In the absence of reliable income evidence, compensation may be assessed using applicable minimum wages.

Ashish Lakda died in a road accident on 8 January 2022 while travelling in vehicle No. CG-07-AW-6196, allegedly driven rashly and negligently by respondent No. 1.

His parents and sister sought compensation under Section 166 of the Motor Vehicles Act, 1988.

The Claims Tribunal awarded ₹12,13,320, assessing the deceased’s monthly income at ₹7,800.

The claimants appealed under Section 173, seeking enhancement on the ground that the income assessment was too low

Whether the Tribunal’s assessment of the deceased’s monthly income at ₹7,800 should be enhanced in the absence of cogent proof of his pleaded income

Whether the Tribunal’s assessment under the other heads of compensation required alteration

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against an award of the Claims Tribunal, while Section 166 provides the basis for a claim arising from a motor-vehicle accident.

In assessing compensation, the Court relied on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, for future prospects and conventional heads; Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, for the personal-expense deduction and multiplier; and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram, (2018) 18 SCC 130, for consortium

The Court applied a 40% addition for future prospects, a one-third deduction for personal expenses, and a multiplier of 16; it also applied 10% enhancement on conventional heads

The Court found the Tribunal’s income assessment of ₹7,800 per month to be low.

Although the claimants pleaded that the deceased earned ₹24,100 per month, they had not produced cogent and reliable evidence to prove that income.

Considering the nature of the work and prevailing rates, the Court assessed income at ₹9,280 per month, corresponding to the applicable Chhattisgarh minimum wage for unskilled labour on the accident date.

Applying the accepted 40% future-prospects addition, one-third personal-expense deduction, and multiplier of 16, the Court calculated loss of dependency at ₹16,62,976.

It found no basis to disturb the Tribunal’s awards for loss of estate, funeral expenses, or consortium

The appellants were entitled to an additional ₹6,14,656, carrying interest at 6% per annum from the date the claim application was filed until realization.

The remaining terms of the Tribunal’s award were left undisturbed