Higher-secondary qualification justified assessing the deceased’s income at skilled-worker minimum wage rates.

Anita Bai, aged approximately 23 years, died in a motor-vehicle accident on 4 July 2023 involving truck bearing registration No. CG/10/AF/4749.

The Motor Accident Claims Tribunal, Patthalgaon, District Jashpur, in Claim Case No. 35/2023, awarded compensation of ₹13,55,200 by award dated 25 March 2025.

Her claimants, Smt. Sewti Painkra and Shri Dhaneshwar Painkra, preferred an appeal under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement.

The insurer opposed enhancement and submitted that the Tribunal’s award was just and proper.

Whether the deceased’s monthly income should have been assessed at ₹11,390, applicable to a skilled person, rather than ₹8,500 assessed by the Tribunal?

Whether the compensation under conventional heads required enhancement in accordance with the applicable Supreme Court precedents?

Whether the total compensation awarded by the Tribunal required modification and, if so, to what extent?

The Court exercised appellate jurisdiction under Section 173 of the Motor Vehicles Act, 1988, to examine the adequacy of compensation.

It applied the principles in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, concerning addition towards future prospects and conventional heads; Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, concerning the deduction for personal and living expenses and selection of the multiplier; and Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 130, concerning compensation under conventional heads.

On that basis, the Court assessed the deceased’s income, added 40% towards future prospects, deducted one-half towards personal expenses, applied the multiplier of 18 for the deceased’s age, and awarded ₹1,32,000 under conventional heads.

The Court found that the Tribunal had undervalued the deceased’s earning capacity by adopting a monthly income of ₹8,500.

Since the documentary evidence established that she had passed Higher Secondary/Class 12, the Court treated her as a skilled person and adopted the minimum-wage income of ₹11,390 per month.

The annual income was consequently calculated at ₹1,36,680. Applying a 40% addition for future prospects, deducting one-half for personal expenses, and applying the multiplier of 18, the Court calculated the loss of dependency at ₹17,22,168.

It further enhanced the amount under conventional heads from ₹70,000 to ₹1,32,000 in accordance with the cited Supreme Court authorities.

The compensation awarded by the Tribunal was enhanced from ₹13,55,200 to ₹18,54,168.

The appellants were held entitled to an additional amount of ₹4,98,968, carrying interest at 6% per annum from the date of filing of the claim application until realization.

All other terms 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.