Compensation was enhanced by applying notified minimum wages and revised conventional heads.

Sandeep Kumar, aged approximately 17 years, died in a motor-vehicle accident on 20 July 2021.

His widow, minor daughter, and grandmother instituted a claim before the Motor Accident Claims Tribunal, Bastar at Jagdalpur.

The Tribunal awarded total compensation of ₹14,90,800 under its award dated 28 October 2023 in Claim Case No. 35/2022.

The claimants preferred the present appeal under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement on the grounds that the deceased’s income and amounts under conventional heads had been assessed inadequately.

The insurer opposed the appeal and supported the Tribunal’s award.

1. Whether the Tribunal erred in assessing the deceased’s monthly income at ₹9,000 instead of the applicable minimum wage of ₹9,200?

2. Whether the compensation awarded under the conventional heads was inadequate and required enhancement?

3. What would be the just compensation payable to the claimants after applying the principles relating to future prospects, personal-expense deduction, multiplier, and conventional heads?

The Court exercised appellate jurisdiction under Section 173 of the Motor Vehicles Act, 1988.

For computation of compensation, it applied the principles in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, including addition towards future prospects and standardisation of conventional heads; Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, concerning deduction towards personal expenses and selection of the multiplier; and Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 1304, concerning compensation under conventional heads, including consortium.

The applicable Chhattisgarh minimum-wage notification issued by the Labour Commissioner required the deceased’s monthly income to be assessed at ₹9,200.

The Court found that the Tribunal had assessed the deceased’s monthly income at ₹9,000, whereas the applicable minimum-wage notification prescribed ₹9,200.

Applying a 40% addition for future prospects, the annual income became ₹1,54,560. After deducting 50% towards the deceased’s personal expenses, the annual contribution to the claimants was calculated at ₹77,280. Applying the multiplier of 18, the loss of dependency amounted to ₹13,91,040, as against ₹13,60,800 calculated by the Tribunal.

The Court further held that the Tribunal had awarded only ₹1,30,000 under conventional heads, whereas ₹1,65,000 was appropriate in light of the governing Supreme Court precedents.

The total compensation was therefore recalculated at ₹15,56,040.

The compensation was enhanced from ₹14,90,800 to ₹15,56,040.

Accordingly, the claimants were held entitled to an additional ₹65,240, carrying interest at 6% per annum from the date of filing of the claim application until realization.

The remaining terms and conditions of the Tribunal’s award were maintained.

The Registry was directed to communicate the enhanced amount to the claimants in Hindi Devanagari, with assistance from paralegal workers and coordination with the concerned Secretary, Legal Aid.