Chhattisgarh HC Adds Rs 5,600 To Woman’s Death Compensation, Applying State Minimum Wage But Keeping Her Age At 63

The appellants, the deceased Kunti Sahu’s claimants, appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of the compensation awarded for her death in a road accident on 31 October 2023.

The Tribunal awarded Rs. 7,68,681, assessed her age at 63 years, and fixed her monthly income at Rs. 10,000.

The claimants contended that her age was 58 and that the compensation was inadequate; the insurer supported the award.

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

In assessing compensation, the Court referred to National Insurance Company Ltd. v. Pranay Sethi, Sarla Verma & Ors. v. Delhi Transport Corporation & Ors., and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors. as governing authorities on motor-accident compensation.

The Court applied the Chhattisgarh Minimum Wages Notification to determine the deceased’s monthly income as Rs. 10,100.

The Court upheld the Tribunal’s finding that the deceased was 63 because no document established that she was 58 on the date of the accident; the Tribunal had relied on the police findings.

It nevertheless found that the monthly income should have been Rs. 10,100 under the applicable minimum-wage notification, rather than Rs. 10,000.

Applying a one-third deduction and a multiplier of seven, while retaining the Tribunal’s amounts for conventional heads and treatment expenses, the Court recalculated the total compensation at Rs. 7,74,281.

The award was enhanced from Rs. 7,68,681 to Rs. 7,74,281, entitling the appellants to an additional Rs. 5,600, with interest at 6% per annum from the filing of the claim application until realization.

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

The Registry was directed to communicate the enhanced amount to the claimants in Hindi.