Insurance liability upheld and compensation enhanced based on updated minimum wages and future prospects.

The litigation arises from a motor vehicle accident on February 2, 2017, where the deceased, Ramcharan Sahu, was fatally struck by a truck (CG 07 CA 3585).

The Motor Accident Claims Tribunal (MACT), Baloda Bazar, awarded compensation on May 5, 2018, holding the insurer liable.

The Insurance Company appealed (MAC 90/2019) seeking exoneration based on an alleged breach of policy conditions regarding a driving license.

Simultaneously, the claimants appealed (MAC 838/2019) seeking an enhancement of the award based on a higher assessment of the deceased's income.

1. Whether the Insurance Company can be exonerated from liability on the grounds of a breach of policy conditions regarding the driver's license.

2. Whether the compensation awarded by the Tribunal requires enhancement based on prevailing minimum wages and established legal precedents.

The Court applied the principles for calculating just compensation under the Motor Vehicles Act, 1988, as established in National Insurance Company Ltd. v. Pranay Sethi regarding future prospects.

Sarla Verma v. Delhi Transport Corporation regarding multipliers and deductions.

Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram regarding the award of parental, spousal, and filial consortium.

The court relied on the Chhattisgarh Minimum Wages Notification to determine notional income in the absence of documentary proof.

Regarding the insurer's liability, the court found that the company failed to provide cogent evidence of a license defect or prove that the owner had conscious knowledge of such a violation; thus, the liability remained with the insurer.

Regarding the quantum, the court found the Tribunal’s assessment of income at ₹4,500/- per month too low given the nature of the deceased's work.

Applying the Minimum Wages Notification, the Court revised the monthly income to ₹6,206/-. The Court then recalculated the total award by: (i) adding 25% for future prospects (deceased was 45 years old); (ii) deducting 1/4th for personal expenses (six dependents); (iii) applying a multiplier of 14; and (iv) awarding ₹40,000/- for consortium to each of the six claimants as per the Magma General guidelines.

The compensation was enhanced from ₹9,28,792/- to ₹12,47,445/-, resulting in an additional amount of ₹3,18,653/-. The Court directed the Insurance Company to deposit the enhanced amount with 6% interest per annum from the date of filing the petition within 12 weeks.