Unproved unskilled income should be assessed at notified minimum wages, with multiplier 15 for ages 36–40.

Smt. Deshi Bai Teta, aged 40, died in a road accident on 30 August 2019.

Her family claimed compensation, asserting that she worked as a labourer and earned ₹9,000 per month.

The Claims Tribunal assessed her monthly income at ₹6,000, applied a multiplier of 14, and awarded ₹11,75,000.

The claimants appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement, principally on the grounds that the income assessment was too low and the correct multiplier was 15.

Whether the Tribunal’s assessment of the deceased’s monthly income at ₹6,000 should be enhanced in light of the applicable minimum-wage notification.

Whether the Tribunal applied the correct multiplier and, consequently, whether the compensation award required enhancement.

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

The Court relied on Sarla Verma & Ors. v. Delhi Transport Corporation & Ors., which prescribes the applicable multiplier by reference to the deceased’s age; for the 36–40 age bracket, the multiplier is 15.

It also referred to National Insurance Company Ltd. v. Pranay Sethi and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors. in computing future prospects and conventional heads of compensation.

In assessing income, the Court applied the Chhattisgarh Labour Commissioner’s minimum-wage notification for unskilled labour.

The claimants had not produced documentary evidence supporting the asserted income of ₹9,000 per month.

The Court therefore assessed income by reference to the applicable minimum-wage notification and fixed it at ₹8,400 per month.

It held that the Tribunal had also erred in applying a multiplier of 14, because the deceased’s age required a multiplier of 15 under Sarla Verma.

Recalculating compensation with the revised income and multiplier, while retaining the Tribunal’s figures for future prospects, deductions, and conventional heads, the Court arrived at a total of ₹16,47,500.

The compensation award was enhanced from ₹11,75,000 to ₹16,47,500, entitling the claimants to an additional ₹4,72,500, with interest at 6% per annum from the date the appeal was filed, 5 September 2023, until realization.

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

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