Chhattisgarh HC Raises Crash-Death Compensation To ₹14.39 Lakh, Revising Deceased’s Income To State Minimum Wage

Hemraj Sahu, aged about 37, died in a road accident on 1 April 2024.

His parents, the claimants, appealed under Section 173 of the Motor Vehicles Act, 1988, against the Claims Tribunal’s award of Rs. 10,95,800, seeking enhancement on the grounds that the deceased’s income and the amounts awarded under conventional heads were assessed too low.

The Tribunal had assessed monthly income at Rs. 7,800 and awarded Rs. 1,13,000 under conventional heads.

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

In assessing compensation, the Court applied the principles in 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. concerning future prospects, deduction for personal expenses, multiplier, and conventional heads.

The Court also relied on the applicable Chhattisgarh minimum-wage notification to assess the deceased’s monthly income.

The Court found that the Tribunal had assessed monthly income at Rs. 7,800, whereas the applicable minimum-wage notification supported an income of Rs. 10,380.

Applying a 40% addition for future prospects, a one-half deduction for personal expenses, and a multiplier of 15, the Court calculated the dependency compensation at Rs. 13,07,880. It also increased compensation under conventional heads from Rs. 1,13,000 to Rs. 1,32,000, producing total compensation of Rs. 14,39,880.

The award was enhanced from Rs. 10,95,800 to Rs. 14,39,880, entitling the appellants to an additional Rs. 3,44,080, with interest at 6% per annum from the date of filing the claim application until realization.

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

The Registry was directed to communicate the enhanced amount to the claimants in Hindi, with paralegal assistance if required.