High Court Raises Compensation to Rs 22.95 Lakh

Authority: High Court of Chhattisgarh at Bilaspur

Order Date: 01.10.2026

Parties: Claimants – Shabnam Khan (widow of Late Amir Khan) and minor Aafiya (daughter, represented by mother Shabnam Khan). Respondents – Sunil Kumar Agrawal (owner), Sanjay Das Mahant (driver), New India Insurance Company Limited (insurance company), Yasin Khan, and Tehrun Khan.
Nature of Proceeding: Appeal under Section 173 of the Motor Vehicles Act, 1988 (MAC No. 1201 of 2023) challenging the award dated 06.09.2022 passed by the Claims Tribunal in Claim Case No. 140/2021.
Background: Ameer Khan, a 25‑year‑old motor mechanic, died in a road accident on 09.04.2021. The Claims Tribunal awarded a total compensation of Rs 22,76,560.
Claimants’ Contentions: Asserted that the deceased earned Rs 15,000 per month, not the Rs 9,200 assessed by the Tribunal, and that the amounts under conventional heads were inadequate.
Respondent (Insurance Company) Contentions: Stated that the Tribunal correctly assessed income based on the Chhattisgarh Minimum Wages Notification and that claimants failed to produce reliable evidence of higher earnings.

The Court found the Tribunal’s monthly income assessment of Rs 9,200 per month to be justified, as no cogent evidence supported the claim of Rs 15,000.
The Tribunal’s methodology:
Annual income = Rs 9,200 × 12 = Rs 1,10,400.
Added 40% for future prospects → Rs 44,160, resulting in Rs 1,54,560.
Deducted 1/4 for personal and living expenses → Rs 38,640, leaving Rs 1,15,920.
Applied multiplier of 18 → Rs 20,86,560.
Under conventional heads, the Tribunal awarded Rs 1,90,000. Citing Supreme Court precedents (National Insurance Co. Ltd. v. Pranay Sethi, Sarla Verma & Ors. v. Delhi Transport Corporation & Ors., Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors.), the Court allowed a 10% enhancement, raising the amount to Rs 2,09,000.
Revised total compensation calculation:
Income component (as above) = Rs 20,86,560.
Enhanced conventional heads = Rs 2,09,000.
Total Revised Compensation = Rs 22,95,560.
The Court ordered that the additional amount of Rs 19,000 be paid, with interest at 6% per annum from the filing of the claim application before the Claims Tribunal until realization.
All other conditions of the original award remain unchanged.

The appeal is partly allowed; the original award of Rs 22,76,560 is modified to Rs 22,95,560.
Claimants are entitled to an extra Rs 19,000 plus interest at 6% per annum.
The Registry is directed to communicate the enhanced award to the claimants in Hindi (Devanagari) with assistance from paralegal workers coordinated by the Secretary, Legal Aid of the concerned area.

Topics: Compensation, Motor Accident