Chhattisgarh HC Adds Rs 8.27 Lakh To Accident Award For Man’s Family, Grants Rs 44,000 Consortium To Each Of 5 Claimants

The appellants—deceased Chakradhar Pandey’s widow, two minor children, and parents—sought compensation under Section 166 of the Motor Vehicles Act, 1988, after he sustained fatal injuries in a motorcycle collision on 28 March 2022 and died on 1 April 2022.

They claimed that he earned ₹30,000 per month as a priest and driver.

The Motor Accident Claims Tribunal assessed his monthly income at ₹6,000 and awarded total compensation of ₹12,99,577.

The claimants appealed under Section 173, seeking enhancement; the insurer opposed the appeal.

Under Sections 166 and 173 of the Motor Vehicles Act, 1988, dependants may claim compensation for a death caused by a motor accident, and an appellate court may review and modify the Tribunal’s award.

In assessing compensation, Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, provides guidance on future prospects, deductions for personal expenses, and selection of the multiplier; National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, governs the addition for future prospects and conventional heads; and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram, (2018) 18 SCC 130, informs compensation for consortium.

The Court considered the Tribunal’s income assessment of ₹6,000 per month too low.

In the absence of reliable evidence establishing the deceased’s occupation and earnings, it assessed income at ₹9,280 per month, applying the relevant Chhattisgarh minimum wage for an unskilled worker.

It upheld the Tribunal’s 40% addition for future prospects, one-fourth deduction for personal expenses, and multiplier of 15, given the deceased’s age of 37 and five dependants.

The Court also found that consortium had been awarded only as a lump sum for all five claimants and held that each was entitled to ₹44,000, totalling ₹2,20,000.

It increased the combined amount for medical expenses and caregiving or attendant charges from ₹88,577 to ₹1,20,000, while retaining ₹16,500 each for loss of estate and funeral expenses.

The Court enhanced total compensation from ₹12,99,577 to ₹21,26,920, entitling the appellants to an additional ₹8,27,343.

The additional amount carries interest at 6% per annum from the date of filing the claim application until realization; the remaining terms of the Tribunal’s award remain unchanged.