Chhattisgarh HC Adds Rs 4.02 Lakh To Road-Crash Compensation For Widow, Four Children And Parents, Using Unskilled-Worker Minimum Wage

The claimants, comprising the deceased’s widow, four minor children, and parents, sought compensation under Section 166 of the Motor Vehicles Act, 1988, for his death in a road accident on 22 October 2022.

They claimed that he earned ₹30,000 per month from a cloth business.

The Motor Accident Claims Tribunal assessed his monthly income at ₹8,200 and awarded total compensation of ₹22,14,536.

The claimants appealed under Section 173 of the Act, seeking enhancement on the ground that the income assessment was too low

The judgment refers to the offending vehicle as a motorcycle in its account of the claim, but identifies it elsewhere as a Hyva vehicle

Section 173 of the Motor Vehicles Act, 1988, permits an appeal against a motor accident compensation award, while Section 166 provides the basis for the underlying compensation claim

In assessing compensation, the Court relied on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, for the applicable addition towards future prospects; Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, for the approach to personal-expense deductions and multiplier; and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram, (2018) 18 SCC 130, in relation to consortium

Where reliable evidence of income was absent, the Court considered the applicable Chhattisgarh minimum wage for an unskilled labourer

The Court found no cogent, reliable evidence supporting the pleaded income of ₹30,000 per month.

However, it considered the Tribunal’s assessment of ₹8,200 too low and adopted the applicable minimum wage of ₹9,960 per month for an unskilled labourer

It left undisturbed the Tribunal’s use of a 40% addition for future prospects, a one-fifth deduction for personal expenses, and a multiplier of 17, given the deceased’s age of 28 and the seven claimants

The Court also maintained the sums awarded under conventional heads, which the appellants had not disputed.

Recalculating dependency loss on the revised income, it arrived at total compensation of ₹26,16,654

The additional compensation carries 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 intact