Conventional compensation heads must be enhanced to ₹16,500 each for funeral expenses and loss of estate, and ₹44,000 per parent for consortium.

Vikas Poyam, aged about 16 years, died in a motor vehicle accident on 16 August 2021.

His parents, the appellants/claimants, instituted a claim petition before the Motor Accident Claims Tribunal, Bastar at Jagdalpur.

The Tribunal assessed the deceased’s monthly income at ₹9,460 on the basis of the applicable Chhattisgarh minimum-wage notification and awarded total compensation of ₹15,40,352, including ₹14,30,352 towards loss of dependency and ₹1,10,000 under conventional heads.

The claimants filed an appeal under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement on the grounds that the income and amounts awarded under conventional heads had been assessed inadequately.

The 57-day delay in filing the appeal was condoned, and the appeal was thereafter heard finally on merits.

Whether the compensation awarded by the Claims Tribunal required enhancement on account of an incorrect assessment of the deceased’s income?

Whether the amounts awarded under the conventional heads of funeral expenses, loss of estate, and loss of consortium were liable to be enhanced in accordance with applicable Supreme Court precedents?

The Court exercised appellate jurisdiction under Section 173 of the Motor Vehicles Act, 1988, which permits an aggrieved party to challenge an award of the Motor Accident Claims Tribunal.

The Court relied on Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, concerning the structured method for calculating loss of dependency; National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, concerning standardized amounts under conventional heads and their permissible enhancement; and Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 1305, concerning consortium payable to eligible claimants.

Applying the prevailing conventional amounts, funeral expenses and loss of estate were assessed at ₹16,500 each, and consortium at ₹44,000 for each of the two claimants.

The Court found that the Tribunal had correctly assessed the deceased’s monthly income at ₹9,460 by applying the Chhattisgarh Minimum Wages Notification applicable on the date of the accident.

Consequently, the loss-of-dependency award of ₹14,30,352 did not warrant interference.

However, the Tribunal had awarded only ₹15,000 towards funeral expenses, ₹15,000 towards loss of estate, and ₹80,000 towards consortium.

Applying the principles in Pranay Sethi and Magma General Insurance, the Court enhanced these amounts to ₹16,500, ₹16,500, and ₹88,000 respectively, the latter being calculated at ₹44,000 for each parent.

The total compensation was therefore recalculated from ₹15,40,352 to ₹15,51,352.

The Court enhanced the compensation from ₹15,40,352 to ₹15,51,352, granting the appellants an additional amount of ₹11,000.

The enhanced amount was directed to carry interest at 6% per annum from the date of filing of the claim application until realization.

All other 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 where necessary.