Minimum wages of Delhi apply where evidence establishes the deceased’s residence and employment in the capital.

On September 12, 2017, the deceased was struck by a rashly driven vehicle (HR-05-AP-0086) while standing on a footpath in Delhi, resulting in fatal injuries

The Motor Accident Claims Tribunal (MACT) awarded compensation of ₹15,13,000 with 9% interest on August 21, 2019

The Appellants (widow, child, and parents) challenged the award on the grounds that the MACT erroneously calculated loss of dependency based on minimum wages in Bihar rather than Delhi, despite evidence of Delhi residency and employment

1. Whether the income of the deceased should be assessed based on the minimum wages applicable in Delhi instead of Bihar

2. Whether the compensation under non-pecuniary heads, specifically loss of consortium and love and affection, required adjustment per established precedents

The Court applied the principles of National Insurance Co. Ltd. v. Pranay Sethi (2017) regarding future prospects and standardized non-pecuniary heads

It relied on Magma General Insurance Co. Ltd. v. Nanu Ram (2018) to expand the scope of "consortium" to include spousal, parental, and filial consortium at ₹40,000 per claimant

Further, it followed United India Insurance Co. Ltd. v. Satinder Kaur (2021), which established that compensation for "loss of love and affection" is not a separate head when "loss of consortium" is awarded

The Court found that documented evidence, including the widow’s Aadhaar card [Ex. PW-1/1], the dead body receipt, and statements from co-workers (Mr. Raman Kumar and Mr. Dalip Kumar), conclusively proved the deceased was residing and working as a laborer in Karol Bagh, Delhi at the time of the accident

Consequently, the MACT’s reliance on Bihar’s minimum wage (₹6,162) was improper; the Court substituted it with the Delhi minimum wage for unskilled workers (₹13,350)

Applying a 40% addition for future prospects and a 1/3rd deduction for personal expenses, the Court re-calculated the annual loss of dependency

Regarding non-pecuniary heads, the Court awarded ₹40,000 to each of the four claimants for loss of consortium while deleting the ₹2,00,000 previously awarded for "loss of love and affection" to align with Satinder Kaur

Respondent No. 3 (Insurance Company) was directed to deposit the enhanced amount within four weeks

The Court ordered an immediate lump sum release of ₹2,00,000 to the claimant, with the remainder to be structured in monthly Fixed Deposit Receipts (FDRs) of ₹15,000 each to ensure sustained financial support