In a landmark ruling on September 3, 2025, the Supreme Court in Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari directed that when motor accident claimants cannot prove income, insurance companies must furnish applicable minimum wage notifications to tribunals. The bench of Justices Sanjay Karol and Prashant Kumar Mishra enhanced compensation for an 8-year-old Gujarat boy with 90% disability from ₹8.65 lakh to ₹35.90 lakh, fixing his income at skilled worker minimum wages.
The Court held that minors cannot be treated as non-earning individuals, emphasizing compensation based on skilled worker wages, with additions for future prospects. Insurance companies now bear responsibility to present wage data in disputed claims. The judgment, circulated nationwide to all Motor Accident Claims Tribunals, ensures uniform application. This decision strengthens claimants’ rights, curbs arbitrary awards, and sets higher benchmarks for fair compensation in accident cases across India.
