Supreme Court raises compensation for informal worker's heirs by ₹6.12 lakh

This is a Supreme Court of India judgment in a civil appeal concerning a motor accident claim, where the Court increased the compensation awarded to the legal heirs of a deceased tea-stall owner. It matters to citizens as it establishes that courts should not apply strict evidentiary standards to informal workers' income claims and provides a specific calculation method for fair compensation in such cases.

The judgment concerns the legal heirs of the deceased (Naseema & Ors.), the respondents (Rajendra Singh & Ors., including the insurance company), and sets a precedent for claimants in motor accident cases involving informal or daily-wage workers.

• The Supreme Court allowed the appeal and increased the total compensation from approximately Rs. 6,11,800 (awarded by the High Court) to Rs. 12,86,300.
• The Court reassessed the deceased's monthly income at Rs. 5,000, rejecting the lower assessments by the Tribunal (Rs. 1,250/month implied) and High Court (Rs. 3,000/month implied), based on the wife's testimony and the nature of the work (tea-stall).
• The Court held that strict rules of evidence applicable in criminal trials do not apply to motor accident compensation cases; the standard is 'preponderance of probability.'
• The Court directed that the insurance company (Respondent No. 2) is liable for the award and must remit the amount directly to the claimants' bank account within four weeks.
• The calculation included a multiplier of 16, 40% for future prospects, and deductions for loss of estate, funeral expenses, and loss of consortium.

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