Notified minimum wages provide the proper income basis when a deceased’s earnings are unproved.

The claimants sought compensation under Section 166 of the Motor Vehicles Act, 1988, for the death of Savitri Sahu, aged 51, following a motorcycle accident on 14 October 2020.

The Claims Tribunal awarded ₹7,34,500, calculating her monthly income at ₹5,000 as an unskilled worker and awarding compensation under conventional heads

In an appeal under Section 173 of the Act, the claimants sought enhancement, contending that the income assessment and amounts under conventional heads were too low

1. Whether the Tribunal’s assessment of the deceased’s income at ₹5,000 per month should be revised in the absence of evidence of her income and occupation

2. Whether the amounts awarded under the conventional heads should be enhanced

Sections 166 and 173 of the Motor Vehicles Act, 1988, respectively provide for a compensation claim and an appeal against a Claims Tribunal award

In assessing compensation, Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, guided the application of the multiplier and deduction for personal expenses; National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, informed the addition for future prospects and the conventional heads; and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram, (2018) 18 SCC 130, informed consortium compensation.

The Court applied the Chhattisgarh minimum-wage notification in force on the accident date to assess the deceased’s income

The Court found the Tribunal’s monthly-income assessment of ₹5,000 too low.

In the absence of evidence establishing the deceased’s income or nature of work, it assessed her as an unskilled worker at the applicable minimum wage of ₹8,960 per month

Applying 10% future prospects, a one-fourth deduction for personal expenses, and a multiplier of 11, the Court calculated loss of dependency at ₹9,75,744.

It increased loss of estate and funeral expenses to ₹16,500 each and consortium to ₹44,000 for each of the four claimants, applying the stated 10% enhancement principle for every three years

The claimants were awarded an additional ₹4,50,244, carrying 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 unchanged