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

On 12 October 2022, Rafikbhai Ismaielbhai Nayak was travelling in a Maruti car to deliver water cans when an ST bus, allegedly driven rashly and negligently by respondent no. 1, collided with the car. He sustained serious injuries and died.

His widow and minor son filed a motor accident claim petition before the Motor Accident Claims Tribunal, Dhrangadhra. The Tribunal awarded ₹6,80,320 with interest at 9% per annum. The claimants appealed to the High Court, challenging the award solely on the ground of inadequacy of compensation, particularly the assessment of income and amounts awarded under conventional heads.

Whether the deceased’s monthly income required reassessment on the basis of the applicable minimum wages when his actual income was not proved by cogent evidence.

Whether the claimants were entitled to an enhanced amount towards future prospects and loss of dependency, considering the deceased’s age and number of dependants.

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

The Court applied the principle that, where the deceased’s actual income is not established by cogent evidence, compensation may be assessed on the basis of the minimum wages applicable to the deceased’s category of work.

For a deceased aged 59 years, 10% is added towards future prospects. The multiplicand is determined after deducting one-third of the income towards personal expenses where the deceased is survived by a widow and one minor child, and the appropriate multiplier is applied according to the deceased’s age.

The Court relied on National Insurance Co. Ltd. v. Pranay Sethi, 2017 (16) SCC 680, concerning future prospects and conventional heads, and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram, 2018 (18) SCC 130, concerning consortium payable to each eligible legal representative.

Since the deceased’s claimed earnings as a driver were not proved, the Court rejected the unsupported income claim but held that the Tribunal should have applied the minimum wages prevailing on the date of the accident.

The applicable minimum wage for a skilled worker was ₹9,887 per month. Adding 10% for future prospects resulted in a monthly income of ₹10,875; after deducting one-third for personal expenses, the monthly contribution to the family was assessed at ₹7,250. Applying a multiplier of 9 for the deceased’s age of 59 years, the loss of dependency was calculated at ₹7,83,000.

The Court further enhanced the conventional amounts to ₹18,150 each for funeral expenses and loss of estate, and awarded ₹96,800 towards consortium at ₹48,400 each for the widow and minor son.

The total compensation was therefore recalculated at ₹9,16,100.

Respondent no. 2, Gujarat State Road Transport Corporation, was directed to deposit the additional amount with interest within six weeks.

The Tribunal was directed to disburse the compensation after due verification and deduction of any deficit court fee.