Case at a Glance
A 21-year-old standing beside a parked motorcycle was killed when a school bus struck him in February 2022. The Motor Accident Claims Tribunal, Nuh awarded ₹14,37,800 on an assumed income of ₹9,000 a month, giving shares only to the parents and nothing to his brother and sister. The Punjab and Haryana High Court held that, absent documentary proof, the Haryana minimum wage for unskilled labour on the accident date applies, and, relying on Magma General Insurance v. Nanu Ram, that all four claimants are individually entitled to consortium of ₹44,000 each. It raised the compensation to ₹22,44,962 and directed the insurer to deposit it within two months.
On 16 February 2022, at about 4:30 p.m., a school bus struck a 21-year-old man who was standing beside a motorcycle stopped on the roadside; the driver allegedly fled and the young man was declared dead at hospital. His parents, brother and sister filed a claim. The driver and owner denied the accident, and the insurer pleaded false implication, contributory negligence, lack of a valid driving licence and breach of policy terms.
By award dated 5 February 2026, the Motor Accident Claims Tribunal, Nuh granted ₹14,37,800 with 7.5% interest from the date of the claim, payable jointly and severally by the driver, owner and insurer, on an assumed income of ₹9,000 a month. The parents received equal shares and the brother and sister received nothing. The claimants appealed, seeking income at the Haryana minimum wage for unskilled labour (₹10,098.88 a month from 1 January 2022) and consortium of ₹44,000 for each claimant.
The Key Question Before the Court
What income should be taken for a deceased with no income documents, and are siblings, along with parents, entitled to compensation for loss of consortium?
Minimum Wage as the Floor, Consortium for Every Claimant
The Court held that where there is no documentary proof of income, the State minimum wage for unskilled labour on the date of the accident governs. It found ₹10,098.88 applicable in District Nuh and rounded it to ₹10,099 a month, giving an annual income of ₹1,21,188. Adding 40% future prospects and deducting one-third for personal expenses, with a multiplier of 18, it computed loss of dependency at ₹20,35,962, and added ₹16,500 each for loss of estate and funeral expenses.
On consortium, the Court relied on Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram, which discusses National Insurance Co. Ltd. v. Pranay Sethi, (2017) 10 SC CK 0044 and Rajesh v. Rajbir Singh, (2013) 04 SC CK 0013 and recognises filial consortium, and referred to the Motor Vehicles Act as beneficial legislation. It held that “all the claimants individually, are entitled for grant of compensation under the head of loss of consortium”, awarding ₹44,000 to each of the four claimants — ₹1,76,000 in all.
What the Court Actually Held
- In the absence of documentary proof, the deceased’s income is to be taken at the State minimum wage for unskilled labour on the accident date — here ₹10,099 a month in District Nuh.
- All claimants, including the brother and sister, are individually entitled to compensation for loss of consortium, at ₹44,000 each.
- Compensation was enhanced by ₹8,07,162, from ₹14,37,800 to ₹22,44,962, and the insurer directed to deposit it with the Tribunal within two months.
- ₹44,000 each is to be paid to the brother and sister, with the minor’s share kept in a fixed deposit until majority, and the balance to the parents as apportioned by the Tribunal.
Why This Judgment Matters
- It ensures that siblings who are claimants are not left out of an award entirely.
- It applies the minimum-wage floor where a young victim’s income cannot be documented.
- It illustrates a full head-wise recalculation under the Pranay Sethi framework.
What Should Advocates Take Away From the Judgment?
For Claimants
- Where income papers are unavailable, claim at least the notified minimum wage for the accident date.
- Each claimant can seek consortium individually, including siblings who are claimants.
- Future prospects of 40% apply to a young self-employed or unemployed victim under this framework.
For Counsel
- Produce the relevant minimum wage notification for the district and date.
- Rely on Magma General Insurance v. Nanu Ram for consortium to each claimant.
- Check how the Tribunal apportioned shares and whether any claimant was left out.
Key Takeaways
- No income papers: minimum wage on accident date applies.
- Consortium of ₹44,000 to each of four claimants.
- Award raised from ₹14.38 lakh to ₹22.45 lakh.
- Insurer to deposit within two months.
Frequently Asked Questions
How is income fixed if the deceased had no income proof?
The Court applied the Haryana minimum wage for unskilled labour on the date of the accident, ₹10,099 a month after rounding, instead of the Tribunal’s assumed ₹9,000.
Can brothers and sisters get consortium in a death claim?
In this case, yes. Relying on Magma General Insurance v. Nanu Ram, the Court held that all claimants individually are entitled to loss of consortium, and awarded ₹44,000 each to the parents, brother and sister.
How much was finally awarded?
₹22,44,962, an enhancement of ₹8,07,162 over the Tribunal’s ₹14,37,800, to be deposited by the insurer within two months.
Conclusion
By re-working each head of compensation, the High Court corrected both an understated income and an award that had left two of the four claimants with nothing.
Practical takeaway: In death claims, ask for income at least at the applicable minimum wage and claim consortium separately for every claimant on the record.
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