A deceased treated as a skilled labourer must be assessed at the applicable minimum wage.

Rajesh Patil, aged 43, died in a road accident on 10 August 2022.

His dependants claimed compensation, pleading that he worked as a driver and earned ₹12,000 per month, but produced no documentary proof of income.

The Claims Tribunal treated him as a skilled agricultural labourer, assessed his monthly income at ₹8,000, and awarded ₹14,69,000.

The claimants appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement on the ground that the applicable minimum wage for skilled labour was ₹11,390 per month.

Whether the deceased’s monthly income should be reassessed at the applicable minimum wage for skilled labour rather than ₹8,000.

Whether reassessment of income required enhancement of the compensation awarded by the Claims Tribunal.

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against a Claims Tribunal award.

In assessing compensation, National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680, supplies the principles for future prospects and conventional heads; Sarla Verma & Ors. v. Delhi Transport Corporation & Ors., (2009) 6 SCC 121, guides the selection of the multiplier and personal-expense deduction; and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors., (2018) 18 SCC 130, informs compensation under conventional heads.

The Court also relied on the Chhattisgarh Labour Commissioner’s minimum-wage notification, which fixed the wage for skilled labour at ₹11,390 per month for the relevant period.

Although the claimants did not prove the pleaded income of ₹12,000 per month, the Tribunal had itself classified the deceased as a skilled agricultural labourer.

The Court therefore considered it erroneous to assess his income below the applicable minimum wage of ₹11,390 per month.

Applying a 25% addition for future prospects, a one-fourth deduction for personal expenses, and a multiplier of 14, the Court recalculated the loss of dependency.

It retained the Tribunal’s award for conventional heads at ₹2,09,000, producing total compensation of ₹20,02,932.

The claimants were awarded an additional ₹5,33,932, with interest at 6% per annum from the date the claim application was filed until realization.

The remaining terms of the Tribunal’s award were left undisturbed.

The Registry was directed to notify the claimants in writing, in Hindi, of the enhanced amount.