An unskilled labourer’s income for compensation must reflect the applicable notified minimum wage.

The appellants, claimants and children of the deceased Sushila Manikpuri, challenged a Motor Accident Claims Tribunal award arising from her death in a road accident on 5 December 2021.

The Tribunal had assessed her monthly income as ₹7,800 and awarded total compensation of ₹12,07,256.

In their appeal under Section 173 of the Motor Vehicles Act, 1988, the appellants sought enhancement, contending that the deceased earned ₹12,000 per month as a labourer.

The insurer opposed interference with the award.

1. Whether the Tribunal erred in assessing the deceased’s monthly income at ₹7,800, and whether it should be revised by reference to the applicable minimum-wage notification.

2. Whether the compensation awarded by the Tribunal required enhancement.

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

In assessing compensation for death, the Court applied the principles in National Insurance Co. Ltd. v. Pranay Sethi, Sarla Verma v. Delhi Transport Corporation and Magma General Insurance Co. Ltd. v. Nanu Ram, concerning, among other matters, future prospects, deductions for personal expenses, multiplier selection and conventional heads of compensation.

The Court also relied on the Chhattisgarh minimum-wage notification for unskilled labour to determine the deceased’s income.

The claimants’ assertion that the deceased earned ₹12,000 per month was unsupported by cogent and reliable evidence.

However, the Tribunal’s income assessment of ₹7,800 was lower than the applicable minimum wage for an unskilled labourer on the date of the accident.

The Court therefore substituted monthly income of ₹9,280.

It left undisturbed the Tribunal’s application of 25% future prospects, a one-third deduction for personal expenses, a multiplier of 13, and the amounts awarded under the conventional heads and for medical expenses.

Recalculation on that basis resulted in total compensation of ₹13,99,656.

The award was enhanced from ₹12,07,256 to ₹13,99,656, entitling the appellants to an additional ₹1,92,400, with interest at 6% per annum from the date of filing the claim application until realization.

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

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