Enhancement of motor accident compensation by upwardly revising the monthly income assessment for deceased skilled laborers.

On February 7, 2022, Nagdev Manjhi died in a motor accident caused by the rash and negligent driving of a truck (CG 07 BW 3651)

The deceased was a tiles mason and the sole breadwinner for his wife and two minor children

The 2nd Additional Motor Accident Claims Tribunal, Raipur, awarded ₹14,90,400/- in compensation on October 8, 2024, assessing the deceased's monthly income at ₹7,800/-

The appellants filed an appeal for enhancement, contending that as a skilled worker, the deceased earned between ₹13,000 and ₹15,000 per month

The Insurance Company resisted the claim, citing a lack of documentary evidence regarding income and occupation

1. Whether the monthly income of ₹7,800/- assessed by the Tribunal was inadequate considering the deceased was a skilled tiles mason

2. Whether the appellants were entitled to enhanced compensation under the heads of future prospects and consortium

The Court applied the principles of "just compensation" under the Motor Vehicles Act.

It relied on the multiplier method and deduction for personal expenses established in Smt. Sarla Verma v. Delhi Transport Corporation (2009) 6 SCC 121

Regarding the addition of 40% for future prospects and the standardization of conventional heads, the court followed National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680

Furthermore, it applied Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors. (2018) 18 SCC 130 to award spousal and parental consortium to the dependents

The Court evaluated the evidence regarding the deceased’s age (36 years) and his status as a skilled laborer (tiles mason)

It determined that the Tribunal’s assessment of ₹7,800/- per month was too low in light of prevailing minimum wages and the nature of the deceased's work, even in the absence of salary slips

Consequently, the Court upwardly revised the monthly income to ₹11,000/-

Applying the Pranay Sethi and Sarla Verma frameworks, the Court added 40% for future prospects, deducted 1/3rd for personal expenses, and applied a multiplier of 15

The Court also corrected the award for conventional heads, granting ₹16,500 for funeral expenses, ₹16,500 for loss of estate, and a total of ₹1,24,000 for spousal and parental consortium, noting the vulnerability of the two minor children (aged 7 and 1)

The claimants were held entitled to an additional amount of ₹5,14,600/- with interest at 6% per annum from the date of the claim application

The Court directed the Insurance Company to deposit the enhanced amount within 60 days

Specific directions were issued to safeguard the interests of the minors, ordering ₹2,00,000/- each to be placed in fixed deposits until they reach majority, and ₹1,00,000/- in a fixed deposit for the widow for two years