Income for motor accident compensation must align with minimum wage notifications and include consortium for dependents.

The appellants, parents of the deceased Sheshnarayan Markam, filed an appeal under Section 173 of the Motor Vehicles Act, 1988, seeking an enhancement of the compensation awarded by the 2nd Additional Motor Accident Claims Tribunal, Rajnandgaon

In the original claim (Claim Case No. 83/2018), the Tribunal awarded ₹9,37,200 with interest for the death of the deceased

The appellants challenged this award on the grounds that the Tribunal undervalued the deceased's monthly income at ₹6,000 instead of the ₹7,930 prescribed by the Chhattisgarh Minimum Wages Notification and failed to grant any amount under the head of "consortium"

1. Whether the monthly income of the deceased should be reassessed in accordance with the Chhattisgarh Minimum Wages Notification

2. Whether the claimants are entitled to compensation under the head of consortium as per prevailing judicial precedents

The Court primarily applied Section 173 of the Motor Vehicles Act, 1988, regarding the maintainability of the appeal

It relied on the formula for calculating "just compensation" established in National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680] for future prospects

It further utilized the guidelines from Sarla Verma Ors. v. Delhi Transport Corporation Ors. [(2009) 6 SCC 121] for determining the appropriate multiplier and deductions for personal expenses

Additionally, the principle for awarding filial and parental consortium was drawn from Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram Ors. [(2018) 18 SCC 130]

The Court found that the Claims Tribunal erred in its income assessment. It determined that the deceased's monthly income should reflect the Chhattisgarh Minimum Wages Notification, setting it at ₹7,930 (₹95,160 per annum)

Following Pranay Sethi, the Court added 40% for future prospects (₹38,064), bringing the total annual income to ₹1,33,224

Applying Sarla Verma, the Court deducted 1/2 of the income (₹66,612) for personal expenses and applied a multiplier of 18, resulting in a loss of dependency of ₹11,99,016

The Court also rectified the Tribunal's omission regarding non-pecuniary damages by awarding ₹80,000 for consortium (₹40,000 for each parent) as per the Magma General Insurance mandate, while maintaining the standard awards of ₹15,000 each for loss of estate and funeral expenses

The Court enhanced the total compensation from ₹9,37,200 to ₹13,09,016

The claimants were held entitled to an additional amount of ₹3,71,816 with interest at 7% per annum from the date of the claim application until realization

The Court directed the respondent insurer to deposit the enhanced sum within three months, while all other conditions of the original award remained intact