Delhi High Court

Notional income of minor deceased to be based on skilled worker's minimum wages with a multiplier of 18.

Liberty General Insurance Co Ltd vs Basanti Devi & Ors.

Delhi High CourtJUDGMENT: May 29, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Appellant Insurance Company challenged the award dated March 30, 2026, passed by the MACT, Dwarka Courts, which granted compensation of ₹26,76,000/- with 7.5% interest for the death of a 13-year-old child

Source reference: p.1

The Appellant contested the use of minimum wages for a "skilled worker" and the application of a multiplier of 18 instead of 15 for a minor

Source reference: p.1-2

During the proceedings, the Respondents (claimants) pointed out that the Tribunal had used an outdated minimum wage figure for Delhi (₹16,792/-) instead of the applicable rate for October 2022 (₹20,357/-)

Source reference: p.8
02

Issues

1. Whether the notional income of a deceased minor below 15 years should be based on the minimum wages of a skilled worker and whether a multiplier of 18 is applicable.

Source reference: p.2 / para. 3

2. Whether the Court can enhance compensation in favor of the claimants in the absence of a cross-appeal or cross-objection.

Source reference: p.8 / para. 7
03

Law Applied

The Court applied the principles established in Rubi Devi v. New India Assurance Co. Ltd. (2026:DHC:3674), which mandates using the minimum wages of a skilled worker and a multiplier of 18 for minors below 15 years

Source reference: p.2, para. 3

It relied on Kajal v. Jagdish Chand and Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari to affirm that minors cannot be treated as non-earning individuals

Source reference: p.3-4

Regarding procedural limits, the Court applied Section 168 of the Motor Vehicles Act and the Supreme Court’s ruling in Nagappa v. Gurudayal Singh (2003) 2 SCC 274, which held that Tribunals must award "just compensation" regardless of the amount claimed or the absence of cross-objections

Source reference: p.9, para. 7

It also invoked Order XLI Rule 33 of the CPC to justify enhancing relief in the absence of a cross-appeal

Source reference: p.9, para. 8
04

Reasoning

The Court rejected the Insurance Company's challenge, noting that settled law now dictates that for deceased minors, the income must be pegged to skilled minimum wages and a multiplier of 18

Source reference: p.6, para. 13; p.8, para. 19

The Court observed that while the Tribunal correctly chose the "skilled worker" category, it erred in the factual application of the wage rate, using ₹16,792/- instead of the statutory ₹20,357/- applicable at the time of the accident

Source reference: p.8, para. 5

Despite the claimants not filing a cross-appeal, the Court held it had a statutory duty to ensure "just compensation"

Source reference: p.9, para. 7-8

Consequently, it applied the corrected wage rate (₹20,357/-), added 40% for future prospects, and deducted 1/2 for personal expenses to recalculate the loss of dependency

Source reference: p.10, para. 10
05

Holding

The Court dismissed the Appellant's grounds of challenge and enhanced the total compensation from ₹26,75,600/- to ₹32,14,628/-

It held that the multiplier of 18 and skilled worker wages are mandatory for minors

Source reference: p.8, para. 19

The Insurance Company was directed to deposit the enhanced amount of ₹5,39,028/- along with 7.5% interest per annum from the date of the petition within six weeks

Source reference: p.11, para. 11-12
Delhi High Court

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Liberty General Insurance Co LtdvsBasanti Devi & Ors.

Delhi High Court · May 29, 2026

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