The assessment of compensation in motor accident claims should be based on the deceased's income and age, in accordance with relevant legal precedents.

ORDER

1. Leave granted.

2. The challenge in the present appeals is to an order dated 15.03.2019 passed by the High Court of Punjab and Haryana at Chandigarh whereby the appeal of the Insurance Company was allowed and that of the Claimants was dismissed. The High Court reduced the amount of compensation to Rs.13,55,200/- from Rs. 29,84,052/-awarded by the learned Motor Accident Claims Tribunal, Karnal.

3. The learned Tribunal granted 50% on account of future prospects, Rs.9 lakhs for loss of love and affection and Rs. 1 lakh each towards loss of estate and loss of consortium. The grant of compensation under the aforesaid heads is contrary to the Constitution Bench judgment in National Insurance Company Limited v. Pranay Sethi & Ors., (2017) 16 SCC 680.

4. It is noted that the High Court assessed the income of the deceased as Rs. 6,000/- taking into consideration the minimum wage of skilled worker at the relevant time in State of Haryana. On the contrary, the Tribunal applied to minimum wages applicable for an unskilled laborer in Haryana during the relevant time, i.e., Rs. 8100/- per month.

5. We find that the High Court erred in relying upon the minimum wages fixed by the Deputy Commissioner on the ground that such wages are payable to the contingency fund. There is nothing on record that such wages were not the minimum wages. The High court had no basis to assess the minimum wages to Rs. 6,000/- pm. The deceased was motor mechanic and would be thus skilled workman. He was less than 40 years of age.

6. Thus, keeping in view the said income and the age of the deceased, the compensation is assessed as follows in terms of judgment of this Court in Pranay Sethi:

7. Hence, the compensation is computed as Rs. 20,05,000/- along with interest @ 9% p.a. as awarded by the learned Tribunal from the date of filing of the claim application till realization. Consequently, the order passed by the High Court is set aside. The appeals thus stand allowed.