Chhattisgarh HC Cuts Fatal-Accident Compensation From ₹30.94 Lakh To ₹21.3 Lakh, Citing Variable Wages And 50% Deduction For Unmarried Deceased

Komal Kant Nirmalkar died in a motor accident on 18 June 2022.

His father and grandparents sought compensation under Section 166 of the Motor Vehicles Act, 1988.

The Tribunal awarded ₹30,94,000, assessing the deceased’s monthly income at ₹15,000, adding 40% for future prospects, deducting one-third for personal expenses, and applying a multiplier of 18.

The insurer appealed against the quantum; the claimants filed cross-objections seeking a further ₹10,06,000.

Section 166 of the Motor Vehicles Act, 1988 provides the basis for a claim for compensation arising from a motor accident, while Section 173 permits an appeal against a Tribunal’s award.

In assessing compensation, the Court relied on Sarla Verma v. Delhi Transport Corporation, which guides the selection of the multiplier and deduction for personal expenses, including a one-half deduction for an unmarried deceased; National Insurance Company Ltd. v. Pranay Sethi, which governs future prospects and conventional heads, including periodic enhancement; and Magma General Insurance Co. Ltd. v. Nanu Ram, which recognises compensation for consortium to eligible claimants.

The Court found that the salary certificate and employer’s evidence did not establish a uniform monthly salary of ₹15,000: the attendance register showed payments of ₹13,000, ₹13,000 and ₹13,500 for March, April and May 2022, and the employer produced neither salary accounts nor income-tax returns. It therefore assessed monthly income at ₹13,000.

Because the deceased was unmarried, the Court applied a one-half deduction for personal expenses, while retaining the Tribunal’s 40% future-prospects addition and multiplier of 18.

It recalculated loss of dependency at ₹19,65,600 and increased the conventional-head awards to ₹16,500 each for loss of estate and funeral expenses, and ₹44,000 for each of the three claimants for consortium.

It reduced the total compensation from ₹30,94,000 to ₹21,30,600, holding the claimants entitled to the revised amount; the remaining terms of the Tribunal’s award were left intact.