Where income is unproved, motor accident compensation must be assessed on prevailing skilled-worker minimum wages.

On 19 March 2018, Samatbhai Kayabhai Vijonda was walking near village Devaliya when car No. GJ-3-CR-4147, allegedly driven rashly and negligently, struck him, causing fatal injuries at the spot

His widow and two children filed a claim petition before the Motor Accident Claims Tribunal, Rajkot. The vehicle owner did not appear, while the insurer contested the claim

By judgment dated 4 January 2023 in MACP No. 381 of 2018, the Tribunal awarded Rs.6,05,400 with interest at 9% per annum from the date of filing until realization

The claimants appealed seeking enhancement, principally contending that the deceased’s income had been assessed too low and that inadequate amounts had been awarded under the conventional heads

The insurer opposed enhancement and argued that only 10% future prospects should be added and that interest should exclude the 585-day period of delay

1. Whether the deceased’s monthly income was required to be reassessed on the basis of the applicable minimum wages for a skilled worker, notwithstanding the absence of cogent proof of actual income?

2. Whether the addition towards future prospects, deduction for personal expenses, and multiplier applied by the Tribunal required modification?

3. Whether the compensation awarded under loss of estate, funeral expenses, and loss of consortium required enhancement in accordance with the applicable Supreme Court precedents?

4. Whether interest on the enhanced compensation was subject to exclusion of the 585-day period of delay in filing the appeal?

In the absence of cogent evidence proving actual income, the income may be assessed with reference to the applicable minimum wages for a skilled worker

For a deceased aged about 56 years, 10% is to be added towards future prospects

After such addition, one-third of the income is deductible towards the deceased’s personal expenses where the dependants comprise a widow and two children, and the appropriate multiplier is to be applied having regard to the deceased’s age

The Court relied on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, for the amounts payable under conventional heads, including loss of estate and funeral expenses

The Court relied on Magma General Insurance Co. v. Nanu Ram @ Chuhru Ram & Ors., AIRONLINE 2018 SC 189, for awarding consortium to the widow and children

The Court also maintained the exclusion of the 585-day period of delay from the interest computation

The Court found that the deceased’s employment with M/s. Krishna Enterprise was shown, but his actual income was not established through cogent evidence, such as testimony from an authorised representative of the employer.

Consequently, instead of retaining the Tribunal’s assessment of Rs.5,500 per month, the Court adopted the minimum wage for a skilled worker prevailing on the accident date, namely Rs.8,388 per month

Since the deceased was approximately 56 years old, the Court added 10% towards future prospects, resulting in a monthly income of Rs.9,227.

After deducting one-third for personal expenses, the monthly contribution to the family was assessed at Rs.6,152.

Applying the multiplier of 9, which the Court considered appropriate, the loss of dependency was calculated at Rs.6,64,416

The Court further enhanced the amounts under the conventional heads by awarding Rs.18,150 towards loss of estate, Rs.18,150 towards funeral expenses, and consortium to the widow and two children, quantified in the final computation at Rs.1,45,200

The total compensation was therefore recalculated at Rs.8,45,916, resulting in an enhancement of Rs.2,40,516 over the Tribunal’s award

The total compensation was enhanced from Rs.6,05,400 to Rs.8,45,916, and the claimants were held entitled to an additional amount of Rs.2,40,516

The enhanced amount was directed to carry interest at 9% per annum from the date of filing of the claim petition until realization, excluding the 585-day period of delay

Respondent No. 2—the insurance company—was directed to deposit the additional compensation with interest within six weeks from 30 July 2026.

The Tribunal’s award was modified accordingly, with no order as to costs