Computation Of Income On Basis Of Minimum Wages For Unskilled Labour Not Reasonable: Rajasthan HC Enhances Motor Accident Compensation For Death Of 18-Yr-Old

The Appellant had approached the Jodhpur Bench of the High Court challenging the judgment of the Motor Accident Claims Tribunal, Suratgarh whereby the Tribunal awarded a compensation amount of Rs 8,04,000 with interest at the rate of 8% per annum in favour of the claimant.

The Single Judge Bench of Justice Rekha Borana asserted, “True it is that no document in support of the said statement/evidence has been placed on record but then this Court cannot lose sight of the fact that the deceased was just 18 years of age and hence, had a huge possibility of excelling in life and a bright future. Therefore, the computation of his income on the basis of the minimum wages for unskilled labour cannot be said to be reasonable.”

The deceased was 18 years of age on the date of accident i.e. May 21, 2013.

The only ground argued by the appellant was that the Tribunal erroneously computed the income of the deceased at the rate of Rs 150 per day on the basis of the wages of an unskilled labour whereas the deceased was employed in the thermal plant and was earning Rs.8,000 per month. It was further submitted that even otherwise, looking at the age of the deceased, the wages ought to have been considered at least for a semi-skilled labour.

However, it was the case of the Insurance Company that there was no evidence available on record to show that the deceased was employed anywhere or was earning any amount, rather the claimant, in her cross examination, specifically admitted that her son was a student and that she has not placed any document on record to prove the income of her son.

The Bench noticed the fact that the deceased was of 18 years of age and the claimant in her affidavit of examination-in-chief specifically averred that the deceased was working in Suratgarh Thermal Plant as a mechanic.

“True it is that no document in support of the said statement/evidence has been placed on record but then this Court cannot lose sight of the fact that the deceased was just 18 years of age and hence, had a huge possibility of excelling in life and a bright future. Therefore, the computation of his income on the basis of the minimum wages for unskilled labour cannot be said to be reasonable”, the Bench held.

The High Court computed the income of the deceased at the minimum wages as applicable to a semi-skilled labour at that point of time. As per the Government notification, the minimum wages as on January 1,2013 prescribed for a semi-skilled labour was Rs 176 per day. The per month income was thus computed to be Rs.5,280.

Thus, partly allowing the appeal, the Bench enhanced the compensation by Rs 1,41,360. The total amount of compensation to be deposited by the Tribunal was set at Rs 9,45,360.

Cause Title:Smt. Gurvinder Kaur v. The New India Insurance Company Ltd [Neutral Citation: 2024:RJ-JD:46296]

Appearance:

Petitioner: Advocates Ravi Panwar & Amit Pareek

Respondent: Advocate Dinesh Kumar Joshi

Click here to read/ download Order: