UNITED INDIA INSURANCE CO LTD Vs. LALITA DEVI

JUDGEMENT

(1.) THIS Appeal is for reduction of compensation of Rs. 9,37,448/- awarded for the death of Pardeip Kumar Parshad who was aged 24 years on the date of the accident which occurred on 28.04.2010.

(2.) DURING inquiry before the Tribunal, it was claimed that the deceased was working as a tailor in export line since 2005. He was earning Rs. 400/- to 480/- per day (Rs. 12000/- to 14,400/- per month). He died as a bachelor. In the absence of any documentary evidence with regard to the deceased's income, the Tribunal took the minimum wages of a matriculate( as the deceased was also a matriculate) as Rs. 6,448/-, added 50% towards indexation and increase in minimum wages on the basis of the judgment of this Court in the National Insurance Company Ltd. V. Kailash Devi, II(2008) ACC 770, applied the multiplier of 14 as per the age of the deceased's mother to compute the loss of dependency, deducted 50% towards personal and living expenses as Rs. 8,12,448/-, added Rs. 1 lakh towards loss of love and affection and Rs. 25,000/- towards funeral expenses to award an overall compensation of Rs. 9,37,448/-.

(3.) IN National INsurance Company Ltd. v. Renu Devi & Ors., III (2008) ACC 134, this Court held that the increase in the minimum wages is not on account of promotion of an unskilled worker or on account of advancement in his career but the same is due to increase in the price index and cost of living. It has also to be borne in mind that the minimum wages are revised not only to meet the inflation but also to improve the standard of living of the lowest paid workers and to give them benefit of growth in GDP.