Enhancement of compensation by applying minimum wage matrix and updated conventional heads for deceased unskilled labourer units.

On August 10, 2020, Sukhdev Singh Binjwar died from injuries sustained after his motorcycle was hit by an offending scooty (CG12-BA-4863)

His widow and daughter filed a claim under Section 166 of the Motor Vehicles Act, asserting the deceased was a 39-year-old mason earning Rs. 20,000 per month

The Claims Tribunal assessed his income at a lower rate of Rs. 6,000 per month and awarded a total compensation of Rs. 11,18,000

The claimants appealed for enhancement, contending that minimum wages for 2020 should apply and conventional heads were improperly calculated

The Insurance Company sought to maintain the award, noting the Tribunal had already applied the "pay and recover" principle because the rider lacked a valid license

1. Whether the income of the deceased assessed by the Tribunal at Rs. 6,000 per month was legally sustainable in the absence of documentary evidence, or if the minimum wage matrix should apply

2. Whether the compensation awarded under conventional heads and future prospects was in accordance with established judicial precedents

The court applied Section 166 of the Motor Vehicles Act regarding compensation for road accidents

It relied on the principles for quantifying "just compensation" established by the Supreme Court in National Insurance Company Limited v. Pranay Sethi (2017), which mandates a 40% addition for future prospects for those aged below 40 and specific amounts for conventional heads

It further applied Magma General Insurance Company Ltd. v. Nanu Ram @ Chuhru Ram (2018) regarding the distribution of loss of consortium to all dependents

For income assessment in the absence of proof, the court applied the Minimum Wage Matrix for unskilled laborers as of August 2020

The Court found the Tribunal’s assessment of Rs. 6,000 per month to be erroneously low, holding that in the absence of cogent evidence of specific earnings, the court must refer to the state's minimum wage standards

As the deceased was an unskilled laborer in August 2020, his monthly income was recalculated to Rs. 8,860

The Court applied a 40% addition for future prospects as the deceased was 39 years old, and a 1/3 deduction for personal expenses

Regarding liability, the Court affirmed the Tribunal's finding that the rider lacked a valid license; hence, the "pay and recover" principle was correctly applied, directing the insurer to satisfy the award first and then seek reimbursement from the owner/driver

The compensation was enhanced from Rs. 11,18,000 to Rs. 16,09,480, resulting in an additional award of Rs. 4,91,480

The Insurance Company was directed to pay the additional amount within 60 days with the right to recover the same from the driver and owner

All other terms of the original award remained intact