Standardizaton of notional income and future prospects for minor compensation using minimum wages and multiplier method.

On August 3, 2011, several minor students were traveling in a school bus (GJ-11-W-387) driven by Opponent No. 1. Due to rash and negligent driving, the bus fell into a pit and turned turtle

The claimants' 8-year-old child sustained injuries and succumbed to them

The Motor Accident Claims Tribunal (MACT), Junagadh, awarded Rs. 2,57,000/- with 9% interest, assessing a notional income of Rs. 10,000/- per annum

The appellants moved the High Court seeking enhancement of compensation, arguing the income should be based on minimum wages for skilled workers and should include future prospects

1. Whether the Tribunal erred in its assessment of the notional income and compensation for a minor deceased victim

2. Whether the claimants are entitled to enhancement under the heads of future prospects and conventional damages like consortium, estate, and funeral expenses

The Court applied the principles of "just compensation" under the Motor Vehicles Act, 1988.

It relied on the minimum wage notifications issued by the Government of Gujarat to determine the notional income of a minor in the absence of actual earnings

The Court followed the binding precedents of National Insurance Company Ltd. v. Pranay Sethi (2017) 16 SCC 680 regarding the addition of 40% for future prospects and fixed amounts for conventional heads

Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram (2018) 18 SCC 130 concerning the entitlement of parental consortium

The Court found the Tribunal’s assessment of Rs. 10,000/- per annum as notional income to be insufficient. It determined that since the deceased was a minor, the minimum wage for a skilled worker at the time of the accident (Rs. 4,660/-) should be the benchmark, rounded to Rs. 5,000/- per month

Applying Pranay Sethi, the Court added 40% for future prospects (totaling Rs. 7,000/-) and deducted 1/2 for personal expenses as the deceased was a bachelor, resulting in a dependency of Rs. 3,500/- per month

Using a multiplier of 15, the future loss of dependency was calculated at Rs. 6,30,000/-. Furthermore, following Magma General Insurance, the Court awarded "filial consortium" to both parents at Rs. 48,400/- each (totaling Rs. 96,800/-) and updated the estate and funeral expenses to Rs. 18,150/- each

Since the Tribunal had already awarded Rs. 2,57,000/-, the Court ordered the Insurance Company to deposit an additional amount of Rs. 5,06,100/- with 9% interest per annum from the date of the claim petition until realization within six weeks. The Court directed the disbursement of the amount to the claimants upon verification and payment of deficit court fees