Assessment of compensation based on minimum wages where documentary evidence of income is lacking.

The appellants/claimants filed an appeal under Section 173(1) of the Motor Vehicles Act, 1988, challenging the award dated 25.03.2022 passed by the Fourth Motor Accident Claims Tribunal, Gwalior.

The case arose from the death of Priyanka Narwariya, a 17-and-a-half-year-old girl, in a motor accident.

While the Tribunal acknowledged the accident and liability, it awarded compensation of Rs.10,90,974/- based on a monthly income of Rs.3,212/-.

The appellants sought enhancement, contending the income was assessed too low given the deceased’s tuition work and age.

1. Whether the income of the deceased was correctly assessed by the Claims Tribunal in the absence of documentary evidence.

2. Whether the claimants are entitled to enhanced compensation under the heads of future prospects, multiplier, and conventional heads according to settled precedents.

The court applied the principle that when documentary proof of income is lacking, income must be assessed per the Minimum Wages Act, as held in Sukhdevi v. Devendra Kumar and National Insurance Co. Ltd. v. Renu Devi.

Regarding future prospects, the court followed National Insurance Co. Ltd. v. Pranay Sethi, which mandates a 40% addition for the deceased's age group.

The multiplier of 18 and the 1/2 deduction for personal expenses of a bachelor were applied per Sarla Verma v. Delhi Transport Corporation.

Parental consortium and loss of estate were governed by United India Insurance Co. Ltd. v. Satinder Kaur.

The High Court found that the claimants failed to provide substantial evidence of the deceased's specific income from tuition.

Consequently, the Court re-assessed her income as an "unskilled person" under the Minimum Wages Act at Rs.7,700/- per month, significantly higher than the Tribunal’s assessment.

Applying the Pranay Sethi guidelines, the Court added 40% for future prospects and applied a multiplier of 18 based on the deceased's age.

As the deceased was a bachelor, the Court deducted 50% for personal expenses.

The Court also integrated medical expenses of Rs.86,730/- and standardized conventional heads (consortium, estate, and funeral) totaling Rs.1,10,000/- to ensure "just and reasonable" compensation.

It answered the issues by enhancing the total compensation to Rs.13,60,970/-, resulting in an additional award of Rs.2,69,996/- over the original amount.

The Court directed the Insurance Company to pay this enhanced sum with interest within three months, subject to the appellants paying any differential Court fees.