Compensation for Loss of Consortium and Dependency in Motor Vehicle Accident Case

The appellants’ grievance is that the High Court erred in computation of compensation for loss of income, and failed to award any amount under the head of “loss of love and affection”, while computing the final compensation under the Motor Vehicles Act, 1988 (hereafter, “MV Act”).

Also Read: https://newslaw.in/supreme-court/legal-analysis-of-claim-for-loss-of-profit-in-delayed-contract/

The MACT concluded that Jagjit Singh had died in the accident due to rash and negligent driving, and partly allowed the claim with a lumpsum award of 6,60,000. The High Court by the impugned judgment, partly allowed the first appeal and enhanced the total compensation to Rs. Deduction towards personal expenses 1/3 1/4 (i.e., 33,250)

4.

Loss of dependency annual income with the addition of future prospects, and adjusting deduction towards personal expenses x multiplier 6,45,000 15,96,000 6.

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Funeral expenses 15,000 15,000 Total 6,60,000 at 6% interest p.a.

It was submitted that his death affected the income generating capacity, and therefore, the loss of dependency on that score was vital. Besides, the documents included the agreement between the deceased, his parents, and brother, whereby he was permitted to cultivate the lands owned by them, and entitled to 1/3 of the value of the produce. The High Court added 38,000/- towards the sum of 95,000/-, towards future prospects (@ 40%) and deducted 1/4 towards expenses of the deceased, thus resulting in re- computation of income at 99,750/- per annum. Applying 40% towards future prospects, the total annual income ( 1,50,000 + 60,000) amounts to 2,10,000.

The concept of non- pecuniary damage for loss of consortium is one of the major heads of award of compensation in other parts of the world more particularly in the United States of America, Australia, etc.

It seems to us that reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs. MACT as well as the High Court have not awarded any compensation with respect to loss of consortium and loss of estate, which are the other conventional heads under which compensation is awarded in the event of death, as recognised by the Constitution Bench in Pranay Sethi.

Also Read: https://newslaw.in/supreme-court/to-hdfc-bank-ltd-under-the-assignment-and-administration-agreement-the-right-over-receivables-deposited-in-the-escrow-account-to-the-extent-they-were-in-excess-of-principal-and-interest-was-retain/

Pranay Sethi, (2017) 16 SCC 680: (2018) 3 SCC (Civ) 248 : (2018) 2 SCC (Cri) 205] dealt with the various heads under which compensation is to be awarded in a death case.

Case Title: HARPREET KAUR Vs. MOHINDER YADAV (2022 INSC 1283)

Case Number: C.A. No.-009233-009233 / 2022

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