Minor’s Vehicle Compensation: Insurer Must Furnish Minimum Wages if Claimant Fails to Provide Income Details
inkinccorporation@gmail.com
In Hitesh Nagjibhai Patel v. Bababhai Nagjibhairabari & Anr [2025 INSC 1070], the Supreme Court established a critical procedural safeguard for calculating compensation in accidents involving minors.
The Standard for Minors: “Skilled Workman” Wages
The Court observed that when a minor child suffers death or permanent disability in a motor vehicle accident, the computation of compensation under the head of “Loss of Income” must be made by adopting, at the very least, the minimum wages payable to a skilled workman.
This calculation should be based on the official notification for the relevant period in the specific State where the cause of action arose.
Shifting the Burden to the Insurer
In a significant move to protect claimants, the Court clarified the responsibility of providing evidence:
The Claimant’s Failure: Even if the claimant fails to furnish appropriate income details or adequate proof, the claim should not be dismissed or undervalued.
The Insurer’s Obligation: It is the specific responsibility and obligation of the contesting party—more particularly the Insurance Company—to place the applicable Government minimum wage notification before the Tribunal.
Judicial Precedent
The Court relied heavily on its earlier ruling in Baby Sakshi Greola v. Manzoor Ahmad Simon & Anr [2024 INSC 963]. In that case, the Court similarly awarded compensation to a minor girl who was a victim of a road accident, using the notified minimum wage for a skilled worker at the time of the accident as the baseline.
Post Views: 10
