There Can Be No Documentary Proof Offered For Income Of Mason: Supreme Court Enhances Motor Accident Compensation

The Appeal before the Apex Court was filed against the quantum of the award. The award of the Tribunal was challenged in the first appeal by both the claimants and the Insurance Company.

The Division Bench of Justice K. Vinod Chandran and Justice N.V. Anjaria held, “Ramachandrappa vs. Manager, Royal Sundaram Alliance Insurance Company Limited held that a Coolie would be entitled to a minimum wage of Rs. 4,500/- in a month; with reference to an accident that occurred in 2004. Considering an incremental increase of Rs.500/- for every year, in 2014, when the accident in the present case occurred even a Coolie would have been entitled to Rs. 9,500/- per month. There can be no documentary proof offered for the income of a Mason, who is also a skilled worker. In any event, it would be safe to adopt a monthly income of Rs. 9,500/-.”

AOR Nikhil Jain represented the Appellant while Advocate Atul Nigam represented the Respondent.

Factual Background

The case presented by the appellant was that the deceased was a Mason and was earning an income of Rs 400 per day. The Tribunal found that there was no documentary proof and adopted the income of Rs 189 per day, which the High Court confirmed was the accepted daily wage at the time when the accident occurred.

Reasoning

The Bench adopted the monthly income of Rs 9,500. The Bench noticed that the High Court, considering the decision in Pranay Sethi (2017), adopted a multiplier of 14 for the 43-year-old deceased, and also made an addition of 25% for future prospects and deducted 1/4th for personal expenses. The Bench found this computation to be perfectly in order.

Coming to the compensation for loss of consortium, the Bench noted that the High Court had awarded an amount of Rs 40,000. Reference was made to the judgment in New India Assurance Company v. Somwati and Ors (2020), where it was held that the loss of parental and filial consortium is payable to the wife and children at the rate of Rs. 40,000 each.

“All the claimants are entitled to Rs. 40,000/- each for loss of consortium. In addition, on the conventional heads of loss of estate and funeral expenses, amount of Rs. 15,000/- each is awarded”, the Bench held.

Thus, allowing the appeal, the Bench ordered, “The awarded amounts shall be paid, after deducting that already paid, with interest @ 6% per annum as directed by the Tribunal from the date of application till the date of payment.”

Cause Title: Smt. Chandra Kala v. ICICI Lombard Motor Insurance Company Limited (Neutral Citation: 2025 INSC 1220)

Appearance

Appellant: AOR Nikhil Jain, Advocate Divya Jain

Respondent: Advocate Atul Nigam, AOR Priya Puri, Advocates Tanvi Nigam, Sachin Dubey, Riya Dogra, Lubhanshi Tanwar

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