Gujarat High Court Partly Allows Appeal for Enhancement of Compensation in Motor Accident Claim - Minimum Wages Applied for Deceased Unskilled Worker. Loss of Dependency Recalculated at Rs.8,64,000/- with Consortium and Funeral Expenses, Total Award Enhanced to Rs.9,59,000/- Under Motor Vehicles Act, 1988.

High Court: Gujarat High Court In Favour of Accused

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2026-05-19 01:15:08

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Case Note & Summary

The present First Appeal under Section 173 of the Motor Vehicles Act, 1988 was filed by the appellants, who are the original claimants, challenging the judgment and award dated 13.01.2020 passed by the Motor Accident Claims Tribunal (Auxiliary), Nadiad in MACP No.377/2017. The Tribunal had partly allowed the claim petition and awarded compensation of Rs.8,26,000/- to the claimants for the death of Jignesh @ Rahul Jashwantbhai Parmar in a motor vehicle accident that occurred on 18.01.2017. The deceased was standing on the side of the road with his motorcycle when a tractor driven by the original opponent No.1 came at full speed on the wrong side and hit him, causing fatal injuries. The claimants sought compensation of Rs.15,00,000/-. The Tribunal held the driver solely negligent and awarded Rs.8,26,000/-. The appellants sought enhancement, arguing that the Tribunal erred in taking the deceased's monthly income at Rs.5,000/- instead of the minimum wages of Rs.8,000/- for an unskilled worker in 2017, and that the compensation under loss of consortium was inadequate. The respondent insurance company opposed the appeal, submitting that the award was just and proper. The High Court considered the submissions and held that in the absence of proof of actual income, the minimum wages for an unskilled worker should be applied. The court noted that the deceased was 25 years old and an unskilled worker, and therefore took his monthly income at Rs.8,000/-. Applying a multiplier of 18 and deducting 50% towards personal expenses, the court calculated the loss of dependency at Rs.8,64,000/-. The court also awarded Rs.40,000/- to each of the two claimants under loss of consortium, totaling Rs.80,000/-, and Rs.15,000/- for funeral expenses. The total compensation was enhanced to Rs.9,59,000/- with interest at 7.5% per annum from the date of petition. The appeal was partly allowed.

Headnote

A) Motor Accident Compensation - Assessment of Income - Minimum Wages - In absence of proof of actual income, the court may consider minimum wages for an unskilled worker as per the year of accident - Held that the Tribunal erred in taking monthly income at Rs.5,000/- instead of Rs.8,000/- being the minimum wages for 2017 (Paras 5-6).

B) Motor Accident Compensation - Loss of Consortium - Enhancement - The Tribunal awarded Rs.40,000/- under loss of consortium which is just and proper as per the principles laid down in National Insurance Co. Ltd. vs. Pranay Sethi - Held that no further enhancement is required (Para 7).

Issue of Consideration

Whether the compensation awarded by the Tribunal was just and proper, particularly regarding the monthly income of the deceased and the amount under loss of consortium.

Final Decision

The appeal is partly allowed. The compensation is enhanced from Rs.8,26,000/- to Rs.9,59,000/- with interest at 7.5% per annum from the date of petition till realization. The insurance company is directed to deposit the enhanced amount within eight weeks.

Law Points

Minimum wages for unskilled worker considered for income calculation
Loss of consortium enhanced to Rs.40
000 per claimant
Future prospects not applicable as deceased was self-employed without proof of income
Section 173 Motor Vehicles Act
1988

Case Details

2026 LawText (GUJ) (01) 220

R/First Appeal No. 1828 of 2022

2026-01-09

Hasmukh D. Suthar

Mr. Nishit A Bhalodi (for appellants), Mr. Nimesh M Patel (for defendants No.1,2), Mr. Vibhuti Nanavati (for defendant No.3), Ms. Radhaben R Bhoi (for defendants No.1,2)

Jashwantbhai Ravjibhai Parmar & Anr.

Suryakant Gulabbhai Jadav & Ors.

Nature of Litigation

First Appeal under Section 173 of the Motor Vehicles Act, 1988 for enhancement of compensation in a motor accident claim.

Remedy Sought

Appellants (original claimants) sought enhancement of compensation awarded by the Tribunal.

Filing Reason

The Tribunal awarded Rs.8,26,000/- which the claimants considered inadequate; they sought higher compensation based on minimum wages and proper consortium.

Previous Decisions

The Motor Accident Claims Tribunal (Auxiliary), Nadiad partly allowed MACP No.377/2017 and awarded Rs.8,26,000/- on 13.01.2020.

Issues

Whether the Tribunal erred in assessing the monthly income of the deceased at Rs.5,000/- instead of minimum wages of Rs.8,000/-? Whether the compensation under loss of consortium was inadequate?

Submissions/Arguments

Appellants argued that the Tribunal should have considered minimum wages of Rs.8,000/- for an unskilled worker in 2017 and that consortium award was low. Respondent insurance company argued that the award was just and proper and no interference was called for.

Ratio Decidendi

In the absence of proof of actual income, the court may consider minimum wages for an unskilled worker as per the year of accident. The multiplier and deductions are applied as per settled principles. Loss of consortium at Rs.40,000/- per claimant is just and proper.

Judgment Excerpts

In the absence of any evidence regarding income, the learned Tribunal ought to have considered the minimum wages of an unskilled worker. Considering the age of the deceased i.e. 25 years, the multiplier of 18 is applied. The compensation under the head of loss of consortium is just and proper.

Procedural History

The claimants filed MACP No.377/2017 before the Motor Accident Claims Tribunal (Auxiliary), Nadiad, which was partly allowed on 13.01.2020 awarding Rs.8,26,000/-. Aggrieved, the claimants filed the present First Appeal under Section 173 of the MV Act before the High Court of Gujarat.