A mason’s income must be assessed at the skilled-labour minimum wage when occupational evidence supports it.

Late Ishwar Lal Netam died in a motor accident on 3 February 2023 involving Motorcycle Passion No. CG 05 N 5046, owned and driven by Respondent No. 1 and insured with Respondent No. 2.

His widow and three minor children filed a claim before the Motor Accident Claims Tribunal.

By award dated 5 August 2024 in Claim Case No. H-55/2023, the Tribunal awarded total compensation of ₹21,57,750, assessing the deceased’s monthly income at ₹9,700 as an unskilled labourer, adding 40% for future prospects, deducting one-fourth towards personal expenses, and applying a multiplier of 15.

The claimants appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement, principally contending that the deceased was a mason and skilled labourer earning ₹12,000 per month, as supported by his identity card.

Whether the deceased’s monthly income was required to be assessed at the minimum wage applicable to a skilled labourer rather than an unskilled labourer

Whether the compensation awarded under the conventional heads—loss of consortium, loss of estate, and funeral expenses—was just and reasonable

Whether the claimants were entitled to enhancement of the total compensation awarded by the Tribunal

The Court exercised appellate jurisdiction under Section 173 of the Motor Vehicles Act, 1988, to examine the adequacy of compensation.

Compensation in a fatal motor accident claim must be just and should be computed by determining the deceased’s established or reasonably assessable income, adding future prospects where applicable, deducting the appropriate share towards personal expenses, and applying the multiplier method under Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121.

The principles governing future prospects and conventional heads were drawn from National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680.

Compensation for consortium, including spousal and parental consortium, was assessed in accordance with Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 1305.

The Court treated the applicable Chhattisgarh minimum wage for skilled labour as ₹11,390 per month.

The Court found that the deceased was a mason and that his identity card issued by the Shri Shrungi Rishi Rajmistri Majdur Sangh supported his classification as a skilled labourer.

Since the accident occurred on 3 February 2023, the Court adopted the applicable skilled-labour minimum wage of ₹11,390 per month instead of ₹9,700 assessed by the Tribunal.

Applying the accepted 40% addition for future prospects, one-fourth deduction for personal expenses, and multiplier of 15—none of which required interference—the loss of dependency increased from ₹18,33,300 to ₹21,52,710.

The Court further enhanced consortium from ₹40,000 to ₹48,000 for each of the four claimants, and increased loss of estate and funeral expenses from ₹15,000 each to ₹18,000 each.

Medical expenses of ₹1,34,450 were retained.

Accordingly, the total compensation was recalculated at ₹25,15,160.

The compensation awarded by the Tribunal was enhanced from ₹21,57,750 to ₹25,15,160, resulting in an additional amount of ₹3,57,410 payable to the claimants.

The enhanced amount was directed to carry interest at 6% per annum from the date of filing of the claim application until realization.

All other conditions of the Tribunal’s award were maintained.

The Registry was directed to communicate the enhanced amount to the claimants in Hindi Devanagari, with assistance from paralegal workers if necessary.