NOTIONAL INCOME OF DECEASED MASON UPHELD AT RS. 10,000 MONTHLY FOR JUST COMPENSATION RECOMPUTATION.

On April 26, 2020, Udayram Markam died in a motor vehicle accident when a motorcycle he was traveling on was hit by an offending Trailer (CG-22-R-9032) driven by Respondent No. 1

The claimants, being the children of the deceased (the wife having died during the proceedings), filed a claim for Rs. 39,27,400/-

The Motor Accident Claims Tribunal (MACT), Katghora, awarded a total compensation of Rs. 11,30,600/-

The appellants challenged this award before the High Court of Chhattisgarh, seeking enhancement on the grounds that the Tribunal erroneously assessed the deceased’s monthly income as a mason at Rs. 6,048/- instead of the claimed Rs. 12,000/-

1. Whether the monthly income of the deceased assessed by the Tribunal was just and proper based on the nature of his employment and the date of the accident

2. Whether the appellants are entitled to an enhancement of compensation under various heads as per established judicial precedents

The Court applied the principles for calculating "just compensation" under the Motor Vehicles Act, 1988.

The formula for future prospects established in National Insurance Company Ltd. v. Pranay Sethi (2017), the multiplier method and deduction rules for personal expenses from Sarla Verma v. Delhi Transport Corporation (2009), and the standards for awarding consortium to dependents (filial and parental) set out in Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram (2018)

The Court observed that the Tribunal’s assessment of the deceased’s income at Rs. 6,048/- per month was inappropriate given the nature of the job (mason) and the economic conditions at the time of the accident in 2020

Consequently, the Court hiked the notional monthly income to Rs. 10,000/-

Following the Pranay Sethi and Sarla Verma guidelines, the Court added 25% for future prospects (as the deceased was 42 years old) and applied a multiplier of 15

A 1/4th deduction was made for personal expenses as there were five dependents at the time of the claim

The Court further adjusted the award to include conventional heads: Rs. 15,000/- for funeral expenses, Rs. 15,000/- for loss of estate, and Rs. 1,60,000/- for consortium for the four children

The Court ordered the Insurance Company to deposit the enhanced amount within 60 days with 6% simple interest per annum effective from the date of filing the appeal (July 5, 2023) and further directed that Rs. 1,50,000/- each be placed in fixed deposits for the claimants for two years