Deceased workers’ income in accident claims must reflect applicable notified minimum wages.

Sukkaram Markam, aged about 35, died in a road accident on 22 September 2020.

The Motor Accident Claims Tribunal, Dantewada, awarded his claimants compensation of ₹18,60,336.

The claimants appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement, principally on the ground that the deceased’s income had been assessed too low.

The insurer opposed the appeal and argued that the amount awarded under conventional heads was excessive

Whether the Tribunal assessed the deceased’s income too low, requiring enhancement of the compensation

Whether the amount awarded under conventional heads should be reduced in light of the applicable enhancement under *Pranay Sethi*

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

Under *National Insurance Co. Ltd. v. Pranay Sethi*, conventional sums for loss of estate, loss of consortium and funeral expenses are ₹15,000, ₹40,000 and ₹15,000 respectively, subject to a 10% enhancement every three years.

The Court also relied on *Sarla Verma v. Delhi Transport Corporation* for the applicable multiplier and deduction principles, and *Magma General Insurance Co. Ltd. v. Nanu Ram* in assessing consortium.

The Court found that the Tribunal had used a monthly income of ₹7,710, whereas the applicable Chhattisgarh minimum-wage notification supported monthly income of ₹8,860.

Applying a 40% addition for future prospects, a one-fourth deduction for personal expenses, and a multiplier of 16, the Court calculated the dependency compensation at ₹17,86,176.

For an accident in 2020, it applied a 10% enhancement to the conventional amounts, fixing loss of estate and funeral expenses at ₹16,500 each and consortium at ₹44,000 for each of five claimants.

The resulting total of ₹2,53,000 under conventional heads was lower than the Tribunal’s award of ₹3,06,000.

The claimants were awarded an additional ₹1,78,840, 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, and the Registry was directed to communicate the enhancement to the claimants in Hindi.