Motor accident compensation: Minimum wages applicable for assessing deceased’s notional income in absence of proof.

In brief

The question

Whether the Motor Accident Claims Tribunal erred in assessing the notional income of the deceased at Rs. 4,000/- per month, which was not in consonance with the minimum wage matrix applicable in the State of Chhattisgarh at the relevant time.

The court held

The court concluded that the award passed by the learned Motor Accident Claims Tribunal required enhancement.

It also directed

The appeal was allowed in part, and the impugned award was modified.

The compensation awarded by the Claims Tribunal of Rs. 6,79,800/- was enhanced to Rs. 9,63,600/-.

The appellants are entitled to an additional amount of Rs. 2,83,800/-.

The Insurance Company is directed to make this enhanced payment within 60 days, with the remaining terms of the original award staying intact.

The appellants shall not receive any interest for the period of delay in filing this appeal.

01Facts

On December 27, 2014, Paleshwar Karsh (deceased) was involved in an accident, where his motorcycle was hit by a truck bearing Registration No. CG-04-KE-0414, resulting in his death.

¶ 2

The claimants, parents of the deceased, filed a claim under Section 166 of the Motor Vehicle Act, seeking Rs. 51,05,000/-.

¶ 2

They pleaded that the deceased was 23 years old and earned Rs. 7,000/- per month.

¶ 2

The Motor Accident Claims Tribunal, Baloda Bazar, in Claim Case No. 80/2016, awarded compensation of Rs. 6,79,800/- with 9% interest per annum on February 24, 2018.

¶ 1

The appellants (claimants) have preferred this appeal under Section 173 of the Motor Vehicle Act, 1988, seeking enhancement of the compensation.

¶ 1

02Issues

i.Whether the Motor Accident Claims Tribunal erred in assessing the notional income of the deceased at Rs. 4,000/- per month, which was not in consonance with the minimum wage matrix applicable in the State of Chhattisgarh at the relevant time.

¶ 3

ii.Whether the Motor Accident Claims Tribunal granted adequate compensation on conventional heads.

¶ 3

03Law Applied

The court primarily applied Section 173 of the Motor Vehicle Act, 1988, which allows for appeals for enhancement of compensation.

¶ 1

The court also relied on the principle that in the absence of cogent evidence to prove the income of the deceased, the minimum wage matrix applicable at the time should be applied.

¶ 6

Specifically, it noted that the minimum wage payable to an unskilled laborer in December 2014 was Rs. 5,500/- per month.

¶ 6

Furthermore, the court considered the principles for awarding compensation on conventional heads, noting that the Tribunal erred by granting a fixed sum of Rs. 77,000/- towards loss of consortium, loss of estate, and funeral expenses, indicating a requirement for reconsideration.

¶ 6

Provisions in the judgment · 2 · Linked ones open on LawLens

Motor Vehicles Act, 1988 Section 173 Section 166

04Reasoning

The court found that while the claimants pleaded an income of Rs. 7,000/-, they failed to provide cogent evidence to prove it.

¶ 6

In such circumstances, the Tribunal should have applied the minimum wage matrix.

¶ 6

The court determined that the minimum wage for an unskilled laborer in December 2014 was Rs. 5,500/- per month, not the Rs. 4,000/- assessed by the Tribunal.

¶ 6

Consequently, the annual income was reassessed at Rs. 66,000/- (@Rs. 5,500 pm).

¶ 6

Regarding conventional heads, the Tribunal's cumulative award of Rs. 77,000/- was deemed inadequate.

¶ 6

The court revisited these heads, awarding Rs. 18,000/- for Loss of Estate, Rs. 18,000/- for Funeral expenses, and Rs. 96,000/- for Loss of Consortium (for two claimants), correcting the Tribunal's fixed sum.

¶ 6

By applying the multiplier of 18 (based on the deceased's age of 23 years), and factoring in future prospects at 40% and a deduction of 1/2, the total compensation was re-calculated.

¶ 6