Undocumented earnings may be assessed at the applicable notified minimum wage for compensation purposes.

The appellants, the parents of Devraj Uike, appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of compensation for his death in a road accident on 23 October 2023.

The Claims Tribunal had awarded ₹12,65,360, assessing his monthly income at ₹7,800 and awarding ₹86,000 under conventional heads.

The appellants contended that his income should have been assessed at the applicable minimum wage of ₹10,100 per month and that the conventional-head award was inadequate.

The Court condoned a five-day delay in filing the appeal, admitted it, and heard it finally with the parties’ consent.

Whether the deceased’s monthly income should be reassessed at ₹10,100, the applicable minimum wage, rather than ₹7,800, in the absence of documentary proof of his earnings as a mason.

Whether the compensation awarded under conventional heads should be enhanced, and whether the total compensation consequently required modification.

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

In assessing compensation, the Court applied the principles in National Insurance Co. Ltd. v. Pranay Sethi, including the addition for future prospects and the amounts under conventional heads; Sarla Verma v. Delhi Transport Corporation, concerning the multiplier and deduction for personal expenses; and Magma General Insurance Co. Ltd. v. Nanu Ram, concerning conventional heads.

The Court also relied on the Chhattisgarh minimum-wage notification to assess the deceased’s income at the applicable rate for unskilled labour where the claimed earnings were unsupported by documents.

The Court found no documentary evidence to establish the deceased’s claimed daily earnings as a mason, but held that his income should be assessed at the applicable minimum wage of ₹10,100 per month rather than the Tribunal’s figure of ₹7,800.

Applying a 40% addition for future prospects, a one-half deduction for personal expenses, and a multiplier of 18, the Court calculated loss of dependency at ₹15,27,120.

It also increased compensation under conventional heads from ₹86,000 to ₹1,32,000, resulting in total compensation of ₹16,59,120.

The appellants were held entitled to an additional ₹3,93,760, 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.

The Registry was directed to notify the claimants in writing, in Hindi, of the enhanced amount, with paralegal assistance if required.