Jharkhand High Court
Transport, Maritime, and Aviation LawInsurance Law

Compensation must include individual consortium for each claimant and realistic income assessment for skilled workers.

SAMPATI DEVI vs ANIL KUMAR

Jharkhand High CourtJUDGMENT: April 17, 20262 MIN READSOURCE JUDGMENT
Compensation must include individual consortium for each claimant and realistic income assessment for skilled workers.. SAMPATI DEVI vs ANIL KUMAR. Jharkhand High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellants (claimants) are the legal heirs of Vishu Mardi, a 20-year-old electrician holding an ITI Diploma who died in a vehicular accident

Source reference: para 3, 8

The Motor Accident Claims Tribunal (Tribunal) at Bokaro awarded a compensation of Rs. 7,36,000/- with 6% interest, calculating the deceased's monthly income at Rs. 5,000/-

Source reference: para 3-4

The appellants challenged this award before the High Court of Jharkhand, seeking enhancement on the grounds that the deceased was a skilled worker whose income should have been assessed at Rs. 12,000/- per month and that individual consortium was not awarded to all six claimants

Source reference: para 4-5
02

Issues

1. Whether the Tribunal erred in assessing the monthly income of a skilled ITI Diploma holder at Rs. 5,000/- despite the prevailing minimum wage notifications for skilled workers

Source reference: para 8

2. Whether each claimant is entitled to a separate award for loss of consortium

Source reference: para 10
03

Law Applied

The Court primarily applied the principles established in Sarla Verma (Smt) and others v. Delhi Transport Corporation and another (2009) 6 SCC 121 regarding the 50% deduction for personal expenses for a bachelor and the application of the appropriate multiplier (18 for the age group of 20 years)

Source reference: para 9

It further adhered to standard judicial practice regarding conventional heads, awarding Rs. 40,000/- per claimant for consortium and Rs. 15,000/- each for funeral expenses and loss of estate

Source reference: para 10
04

Reasoning

The Court observed that while documentary evidence for a monthly income of Rs. 12,000/- was absent, the deceased’s status as a qualified electrician with an ITI Diploma justified a reasonable income estimate of Rs. 8,000/- per month

Source reference: para 8

The Court rejected the Insurance Company's argument that the lack of work experience justified a lower income, noting his trade and qualification

Source reference: para 6, 8

Following established precedent, the Court added 40% for future prospects (bringing the income to Rs. 11,200/-) and deducted 50% for personal expenses as the deceased was a bachelor

Source reference: para 8-9

Using a multiplier of 18, the dependency was calculated at Rs. 12,96,000/-

Source reference: para 9

Regarding consortium, the Court held that the Tribunal erred in awarding a lump sum of Rs. 40,000/- and instead awarded Rs. 40,000/- to each of the six claimants

Source reference: para 10
05

Holding

The High Court partly allowed the appeal, enhancing the total compensation from Rs. 7,36,000/- to Rs. 14,79,600/-

The Court ordered that the enhanced amount shall carry interest at 6% per annum from the date of the claim petition until realization

Source reference: para 12-13

The Insurance Company was directed to deposit the differential amount with the Court within six weeks

Source reference: para 15

Upon deposit, the Registry was directed to transfer the funds directly to the appellants' bank accounts while maintaining the investment directions of the original Tribunal order

Source reference: para 16
Jharkhand High Court

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SAMPATI DEVIvsANIL KUMAR

Jharkhand High Court · April 17, 2026

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