Motor accident compensation must apply notified minimum wages when assessing the deceased’s income.

The appellants/claimants challenged the award dated 21 March 2023 passed by the 9th Additional Motor Accident Claims Tribunal, Raipur, in Claim Case No. 345/2022, arising from the death of Priyanka Das, aged approximately 26 years, in a road accident on 15 January 2022.

The Tribunal awarded total compensation of ₹14,38,358/-.

The claimants contended that the deceased’s monthly income had been assessed too low.

The respondents-driver and owner submitted that the vehicle was insured with Respondent No. 3 and that they were not liable to satisfy the award; the insurer did not appear before the High Court.

Whether the Claims Tribunal had incorrectly assessed the deceased’s monthly income at ₹7,800/- instead of the applicable minimum-wage income of ₹9,280/-.

Whether, upon reassessment of income and application of the principles governing future prospects, personal-expense deduction, multiplier, and conventional heads, the claimants were entitled to enhanced compensation.

Whether the enhanced amount should carry interest and whether the remaining conditions of the Tribunal’s award should be maintained.

The Court applied Section 173 of the Motor Vehicles Act, 1988, governing appeals against awards of the Motor Accident Claims Tribunal.

For computation of compensation, it relied on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, concerning future prospects and conventional heads; Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, concerning deduction for personal expenses and application of the multiplier; and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram, (2018) 18 SCC 1304, concerning compensation under conventional heads.

The Court also applied the Chhattisgarh minimum-wages notification issued by the Labour Commissioner to determine the deceased’s monthly income at ₹9,280/-.

The Court found that the Tribunal had assessed the deceased’s monthly income at ₹7,800/-, whereas the applicable minimum-wages notification supported an income of ₹9,280/-.

On that basis, the annual income was calculated at ₹1,11,360/-. Applying 40% towards future prospects resulted in ₹1,55,904/-, from which 50% was deducted towards the deceased’s personal expenses, leaving an annual contribution of ₹77,952/-.

Applying the multiplier of 17 produced a loss-of-dependency amount of ₹13,25,184/-.

The Court retained the amounts awarded for conventional heads, medical expenses, and transportation—₹1,21,000/-, ₹1,88,518/-, and ₹15,000/-, respectively—resulting in total compensation of ₹16,49,702/-.

The appeal was partly allowed.

The compensation was enhanced from ₹14,38,358/- to ₹16,49,702/-, entitling the appellants to an additional ₹2,11,344/-.

The enhanced amount was directed to carry interest at 6% per annum from the date of filing of the claim application until realization.

All other conditions of the Tribunal’s award were left undisturbed.

The Registry was directed to communicate the enhanced amount to the claimants in Hindi/Devanagari, with assistance from paralegal workers where necessary.