Chhattisgarh High Court

Enhancement of motor accident compensation by adopting minimum wages for notional income assessment and awarding filial consortium.

Smt. Renu Devi v. Nirbhay Kumar Mehta & Others [MAC No. 1426 of 2024; 2026:CGHC:9330]

Chhattisgarh High Court2 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Appellant, mother of the deceased (Shubham Kumar Soni, aged 27), filed a claim under Section 166 of the Motor Vehicles Act following a fatal accident on March 7, 2023.

Source reference: no citation

The deceased was struck by a rashly driven trailer while riding his motorbike.

Source reference: p. 2, para 5

The Motor Accident Claims Tribunal (MACT), Surajpur, awarded a total compensation of ₹10,35,600/- with 6% interest, assessing the deceased's notional income at ₹7,000/- per month despite the claimant's plea of ₹15,000/- per month.

Source reference: p. 1-2, para 4-5

Dissatisfied with the quantum, the claimant appealed for enhancement, arguing that the income assessment should have followed the minimum wage for March 2023 (₹9,700/-) and included loss of consortium.

Source reference: p. 2, para 6
02

Issues

Whether the Claims Tribunal erred in assessing the notional income of the deceased at ₹7,000/- per month instead of following the minimum wage schedule.

Source reference: p. 2-3, para 6 & 9

Whether the claimant is entitled to enhancement of compensation under heads such as future prospects and loss of consortium.

Source reference: p. 3, para 9-10
03

Law Applied

The Court applied Section 173 of the Motor Vehicles Act regarding appeals and the "just compensation" principle under Section 166.

Source reference: p. 1-2, para 4-5

It relied on the formulaic standards established in *National Insurance Company Ltd. v. Pranay Sethi (2017)* for future prospects (40% for deceased under 40 years) and funeral/estate expenses.

Source reference: p. 3, para 10

It applied *Sarla Verma v. Delhi Transport Corporation (2009)* for the multiplier (17 for age 27) and 50% deduction for personal expenses of a bachelor.

Source reference: p. 3-4, para 10

Finally, it applied *Magma General Insurance Co. Ltd. v. Nanu Ram (2018)* to award "filial consortium" to the mother.

Source reference: p. 3, para 10
04

Reasoning

The High Court found that while the claimant failed to prove a monthly income of ₹15,000/-, the Tribunal's assessment of ₹7,000/- was improperly low.

Source reference: p. 3, para 9

The Court reasoned that the Tribunal should have utilized the minimum wage matrix for an unskilled laborer as of March 2023, which was ₹9,700/- per month.

Source reference: p. 2, para 6; p. 3, para 9-10

By recalculating the base income at ₹9,700/-, the Court performed a de novo computation: applying a 50% deduction for a bachelor, adding 40% for future prospects, and using a multiplier of 17.

Source reference: p. 4, para 10

Additionally, the Court addressed the Tribunal’s omission of "loss of consortium," awarding ₹44,000/- in line with the *Magma General* precedent.

Source reference: p. 3-4, para 10
05

Holding

The High Court allowed the appeal in part, answering the issues in the affirmative.

The Court enhanced the total compensation from ₹10,35,600/- to ₹14,65,160/-, granting an additional amount of ₹4,29,560/-.

Source reference: p. 4, para 11

The Insurance Company was directed to deposit the enhanced amount within three months at an interest rate of 6% per annum from the date of the claim application.

Source reference: p. 4, para 11-12
Chhattisgarh High Court

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Smt. Renu Devi v. Nirbhay Kumar Mehta & Others [MAC No. 1426 of 2024; 2026:CGHC:9330]

Chhattisgarh High Court

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