Case BriefsSupreme Court

Supreme Court: Taking note of the fact that several Tribunals and High Courts have been awarding compensation for both loss of consortium and loss of love and affection, the bench directed the Tribunals and High Courts to award compensation for loss of consortium, which is a legitimate conventional head.

“There is no justification to award compensation towards loss of love and affection as a separate head.”

The 3-judge bench of SA Nazeer, Indu Malhotra and Aniruddha Bose, JJ was hearing an issue relating to determination of compensation in a motor vehicle accident case.

On Loss of Consortium

The Constitution Bench in National Insurance Company Limited v. Pranay Sethi, (2017) 16 SCC 680, has recognized only three conventional heads under which compensation can be awarded viz. loss of estate, loss of consortium and funeral expenses.

Explaining the law on loss of consortium, the Court said that the right to consortium would include the company, care, help, comfort, guidance, solace and affection of the deceased, which is a loss to his family. With respect to a spouse, it would include sexual relations with the deceased spouse. Parental consortium is granted to the child upon the premature death of a parent, for loss of parental aid, protection, affection, society, discipline, guidance and training. Filial consortium is the right of the parents to compensation in the case of an accidental death of a child.

The Court noticed that in Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 130, this Court gave a comprehensive interpretation to consortium to include spousal consortium, parental consortium, as well as filial consortium. Loss of love and affection is comprehended in loss of consortium.

The Court, hence, said that it was necessary to provide uniformity with respect to the grant of consortium, and loss of love and affection.

On Future Prospects

In the wake of increased inflation, rising consumer prices, and general standards of living, future prospects have to be taken into consideration, not only with respect to the status or educational qualifications of the deceased, but also other relevant factors such as higher salaries and perks which are being offered by private companies these days. The dearness allowance and perks from which the family would have derived monthly benefit, are required to be taken into consideration for determining the loss of dependency.

The Court, further, reiterated:

  • The age of the deceased should be the basis for applying the multiplier.
  • Reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs. 15,000/-, Rs. 40,000/- and Rs. 15,000/- respectively. The aforesaid amounts should be enhanced at the rate of 10% in every three years.
  • The decision in Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, is to be relied upon for determination of the multiplicand, the deduction for personal and living expenses, and the selection of multiplier.

[United India Insurance Co. Ltd. v. Satinder Kaur, 2020 SCC OnLine SC 410 , decided on 30.06.2020]


Also read:

Future income of salaried or self-employed person to be considered while computing compensation under MV Act

Court duty-bound to provide ‘just compensation’ under MV Act irrespective of plea; compensation for ‘loss of consortium’ awarded under Article 142

Case BriefsHigh Courts

Rajasthan High Court: P.K. Lohra, J. allowed an appeal for enhancement of the compensation amount awarded by the Motor Accident Claims Tribunal, Bikaner.

In the instant case, the husband of the appellant wife, aged about 38 years, was driving to Bikaner from Delhi in his car when he was hit by a truck, driven at a high speed and rashly. The severity of the accident caused the husband to expire on spot. The appellants claimed compensation. The Tribunal decided the accident to have happened due to the negligence of the truck driver and there was no negligence on the part of the deceased. The Tribunal had made one-third deduction as his personal expenses from the salary and thereafter, compensation for loss of dependency, and non-conventional damages worked out total amount of compensation to Rs 4,19,000.

The Counsel representing the appellant, Gurvinder Singh, challenged the order contending that the tribunal did not consider the income tax return of the deceased and income of business profits while calculating the compensation amount. He also put forth, the tribunal erred in not taking into consideration the number of dependents (which was four in number) instead it considered three. Lastly, the learned counsel contended that the interest should have been awarded at 9% per annum.

The Counsel representing the respondents, Mukul Singhvi, defended the impugned judgment of the tribunal and stated that the court was correct in calculating the interest at 6% per annum.

The High Court upon examination of the evidences produced before the Court, decided to enhance the compensation amount. It reassessed the income of the deceased and took into consideration the number of dependents of the family, hence deducted one-fourth under the head “Loss of Dependency”. The High Court placed reliance on the Supreme Court Judgment in Sarla Verma v. DTC, (2009) 6 SCC 121, wherein it was held that the number of dependents shall be taken into consideration while calculating one’s deduction of personal expenses. However, while calculating the future prospects of the deceased it allowed a 40% increase on the same owing to difficulty in calculating one’s future prospects and by placing reliance on the decision of the Supreme Court in National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680 wherein it was decided to make the quantum of compensation just and reasonable. The court also awarded unprecedented damages under the head “loss of consortium”, which relates to the right of spouse to the company care, help, etc. It thereafter went on to enhance the amount awarded towards the children of the deceased and for the funeral expenses as well. The Court, therefore, reassessed and enhanced the compensation amount partly to what the Tribunal had declared, and it also directed the rate of interest to be at 9% per anum in accordance with the Reserve Bank of India Guidelines.[Arti v. Teja Ram, 2019 SCC OnLine Raj 1168 decided on 02-04-2019]

Kerala High Court
Case BriefsHigh Courts

Kerala High Court: A Single Judge Bench comprising of P.R. Ramachandra Menon, J. while hearing a motor accident claims appeal, ruled that compensation towards ‘loss of consortium’ includes compensation for ‘loss of love and affection’.

The present appeal arises out of a motor accident claim petition filed by the appellant due to the death of his son while traveling in a taxi owned, driven and insured by respondent. Though the Tribunal found the accident to be solely attributable to the negligence of the driver it noted that the actual income of the deceased had not been substantiated properly. As such, taking Rs 1500 as notional monthly income, it awarded Rs 1,15,000 as compensation. The only challenge in the present appeal was in relation to the inadequacy of compensation awarded by the Tribunal.

The  High Court noted that though the actual income had not been proven, the factum of employment was brought on record. As such, it was of the view that fixation of notional monthly income as Rs 1500 was very low and the same was doubled and refixed as Rs 3000 inclusive of future prospects. The court also refixed the compensation payable towards loss of love and affection and loss of estate.

The appellant submitted that he was also entitled to compensation towards loss of consortium. The court noted that there are three kinds of compensation payable towards loss of consortium being; (i) spousal consortium, (ii) parental consortium, and (iii) filial consortium. In case of accidental death of a child, parents are entitled to filial consortium as a compensation for loss of love, affection, care, and companionship of the deceased child.

Relying on the judgment in National Insurance Company Limited v. Pranay Sethi, (2017) 16 SCC 680, the court observed that compensation awarded towards consortium is primarily compensation for loss of love, affection, care, and companionship. Thus, the appeal was allowed in part holding that since compensation for loss of love and affection had already been awarded in the present case, therefore no further compensation was payable under a separate head of ‘loss of consortium’. [K. Karthiyani Amma v. M. Sukumar,2018 SCC OnLine Ker 4144, decided on 19-09-2018]

 

Case BriefsSupreme Court

Supreme Court: The Bench comprising of Rohinton Fali Nariman and Indu Malhotra, JJ. disposed of an appeal filed challenging the compensation awarded by the Punjab and Haryana High Court under Motor Vehicles Act, 1988.

The deceased was riding on a bike when he was hit by the vehicle driven by Respondent 3 which resulted in his death. The claim petition filed by dependants of the deceased under Section 166 of MV Act was allowed by the Motor Accident Claims Tribunal which was further enhanced by the High Court on an appeal preferred by the dependants. Aggrieved thereby, the insurance company filed the instant civil appeal.

The Supreme Court perused the orders of the MACT as well as the High Court and found that the order needs to be modified. The Court while disposing of the appeal, inter alia, added, to the already existing heads, two more heads of compensation. Relying on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, the Court held that Loss of Consortium and Loss of Estate are other conventional heads under which compensation is awarded in the event of death. In legal parlance, consortium is a compendious term which encompasses spousal consortium, parental consortium, and filial consortium. The Court observed that the MV Act being a social welfare and beneficial legislation, it was duty-bound to provide just compensation irrespective of whether plea in that behalf is raised or not by the claimant. In exercise of power under Article 142 of the Constitution, the Court awarded Rs 15,000 towards Loss of Estate. In regard to consortium, it was observed that right to consortium would include the company, care, help, comfort, guidance, solace and affection of the deceased which is a loss to his family. With respect to a spouse, it would include sexual relations. Reference, in this connection, was made to Rajesh v. Rajbir Singh, (2013) 9 SCC 54. Following the principles of awarding compensation under Loss of Consortium as laid down in Pranay Sethi, the Court awarded a compensation of Rs 80,000 as compensation towards loss of filial consortium. The appeal was accordingly disposed of. [Magma General Insurance Co. Ltd. v. Nanu Ram,2018 SCC OnLine SC 1546, decided on 18-09-2018]