Motor accident compensation must reflect income prescribed by the applicable minimum-wage notification.

Ramhu Sahu, aged about 52, died in a road accident on 25 January 2023.

His widow and three sons sought compensation from the driver, owner, and insurer.

The Motor Accident Claims Tribunal, Dhamtari, awarded Rs. 10,02,464.

The claimants appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement, contending that the Tribunal had assessed the deceased’s income too low and awarded inadequate amounts under conventional heads.

The insurer opposed enhancement.

Whether the Tribunal’s assessment of the deceased’s income should be enhanced by reference to the applicable Chhattisgarh minimum-wage notification.

Whether the compensation awarded under conventional heads should be enhanced.

Section 173 of the Motor Vehicles Act, 1988, provides for an appeal against an award of a Motor Accident Claims Tribunal.

In assessing compensation, the Court relied on National Insurance Co. Ltd. v. Pranay Sethi, Sarla Verma v. Delhi Transport Corporation, and Magma General Insurance Co. Ltd. v. Nanu Ram, applying the principles concerning future prospects, personal-expense deductions, multiplier selection, and compensation under conventional heads.

The Court also applied the Chhattisgarh minimum-wage notification to determine the deceased’s monthly income.

The Court found that the Tribunal had assessed monthly income at Rs. 8,320, whereas the applicable minimum-wage notification supported an assessment of Rs. 9,960.

Applying 10% future prospects, a one-third deduction for personal expenses, and a multiplier of 11, the Court calculated loss of dependency at Rs. 9,64,128.

It also increased compensation under conventional heads from Rs. 1,97,000 to Rs. 2,28,000, bringing total compensation to Rs. 11,92,128.

The claimants were held entitled to an additional Rs. 1,89,664, with interest at 6% per annum from the date of filing the claim application until realization.

The remaining terms of the Tribunal’s award were left undisturbed.

The Registry was directed to communicate the enhancement to the claimants in Hindi, with paralegal assistance if required.