Loss of dependency compensation enhanced by recalibrating deceased’s monthly income based on prevailing minimum wages.

The Appellants (mother and grandmother of the deceased) challenged the award dated 10.10.2024 passed by the Motor Accident Claims Tribunal, Bastar

On 19.10.2022, 15-year-old Kartik died after the motorcycle on which he was a pillion rider was struck by a Pick-up Van (CG-17-KQ-1322) driven rashly by Respondent No. 1

The deceased was allegedly working as a conductor/cleaner earning ₹12,000 per month

The Tribunal assessed his monthly income at only ₹4,000 and awarded a total compensation of ₹7,14,800

The Appellants sought enhancement of the compensation on the grounds that the income assessment was too low given the lack of other male earning members in the family

1. Whether the monthly income of ₹4,000 assessed by the Tribunal was just and reasonable considering the age, occupation, and prevailing minimum wages of the deceased at the time of the accident.

2. Whether the Appellants are entitled to an enhancement of the compensation awarded under the Motor Vehicles Act, 1988.

The Court applied Section 173 of the Motor Vehicles Act, 1988 regarding appeals against awards

It relied on the multiplier and deduction principles established in Sarla Verma v. Delhi Transport Corporation (2009)

the mandate for awarding "future prospects" as per National Insurance Co. Ltd. v. Pranay Sethi (2017)

the court applied the principle of "filial consortium" for parents and grandparents as recognized in Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram (2018)

The Court found that the Tribunal’s assessment of ₹4,000 per month was "on the lower side"

Considering the deceased was working as a conductor/cleaner in the offending vehicle, the Court evaluated the facts including the minimum wages prevailing in October 2022, the residence of the Appellants, and the number of dependents

Applying the established legal framework: 40% was added for future prospects (deceased was under 40); 50% was deducted for personal expenses (deceased was a bachelor); and a multiplier of 18 was applied (based on age 15-16)

The Court also regularized the awards for loss of estate, funeral expenses, and filial consortium to align with standard judicial scales

After deducting the amount already awarded by the Tribunal, the Court granted an additional compensation of ₹8,34,600 with interest at 6% per annum from the date of appeal (11.04.2025)

The Insurance Company (Respondent No. 3) was directed to deposit the amount within 60 days, with specific directions for fixed deposits in the name of the Appellants to ensure financial security