In a recent legal analysis, a High Court reevaluated a compensation amount in a case involving loss of dependency. The court’s decision considered factors like notional income, future prospects, and consortium entitlements for the claimants. This summary delves into the legal intricacies of the case and the implications of the court’s revised judgment.
Facts
- The High Court reduced the compensation amount from Rs. 20,64,000/- to Rs. 11,34,136/-
- High Court considered notional income at Rs. 6,500 per month and deducted 1/3 for personal expenses
- Original claimants appealed against High Court’s decision to reduce compensation
- Calculations show claimants may be entitled to Rs. 12,37,790/- under loss of dependency
- Tribunal had awarded Rs. 19,89,000/- under loss of dependency with different income considerations
- High Court also reduced the interest rate from 9% p.a. to 6% p.a.
- The original claimants, including the wife of the deceased, minor daughter, father, and sister, filed the claim petition before the Tribunal.
- The claimants were seeking compensation for the loss suffered due to the death of the deceased.
Also Read: Legal Analysis of Admission Irregularities in Educational Institutions
Analysis
- The amount awarded by the High Court is considered to be on the lower side.
- The High Court did not factor in future prospects when awarding loss of dependency.
- It is observed that the award needs to be reevaluated for a more comprehensive consideration.
- As per the decision in National Insurance Company Limited Vs. Pranay Sethi and Ors., (2017) 16 SCC 680, there shall be a 40% rise towards future prospects.
- In accordance with the decision in the case of Pranay Sethi and Ors. and the recent decision in Janabai and Ors. Vs. I.C.I.C.I. Lombard General Insurance Company Ltd., 2022 ACJ 2003, the claimant is entitled to Rs. 40,000/- towards parental consortium for minor child, Rs. 40,000/- towards spousal consortium for the wife, and Rs. 40,000/- towards filial consortium for the father of the deceased.
- The total entitlement under the head loss of consortium for the claimants is Rs. 1,20,000/-.
Also Read: Quashing of Enhanced Tuition Fee in Private Medical Colleges
Decision
- The claimants are entitled to Rs. 13,78,790/- with interest at 7.5% p.a.
- Additionally, the claimants are entitled to Rs. 30,000/- under the conventional head for funeral expenses and loss of estate.
- The present appeals have been allowed in part, modifying the impugned judgment and order passed by the High Court.
- There shall be no order as to costs in the present appeals.
- Considering the fact that the deceased died in 2012, the claimants shall receive interest at the rate of 7.5% p.a.
Also Read: Final Decision and Disclosure in Collegium Meetings
Case Title: SARUP SINGH @ RAM SARUP Vs. HDFC ERGO GENERAL INSURANCE COMPANY LTD (2022 INSC 1098)
Case Number: C.A. No.-007283-007284 / 2022
