The court held that future prospects should be granted at the rate of 50% of actual salary for deceased below the age of 40 years, 30% for deceased between the age of 40 to 50 years, and 15% for deceased between the age of 50 to 60 years. The court also held that consortium is not limited to spousal consortium and it also includes parental consortium as well as filial consortium.

JUDGMENT

(Per Hon’ble Sri Justice Joymalya Bagchi)

MACMA No.2764 of 2015 has been preferred by the wife and two children of the deceased and MACMA No.2771 of 2016 has been preferred by the mother of the deceased challenging the compensation granted in the order, dated 25.08.2015, in MVOP No.205 of 2013 on the file of the Chairman, Motor Accidents Claims Tribunal-cum-XV Additional District Judge, Nuzvid, (for short, ‘the Tribunal’) in their favour primarily on the ground that the compensation awarded by the Tribunal is inadequate.

2. Sri Challa Ajay Kumar, learneed counsel appearing for the appellants in MACMA No.2764 of 2015, argues in view of the law declared in National Insurance Company Limited Vs. Pranay Sethi, (2017) 16 SCC 680 the Tribunal ought to have granted future prospects at the rate of 40% of the actual salary of the deceased, who was aged 42 years and employed in Singareni Collaries. He further relying on Somwati and others Vs. New India Assurance Company Limited, (2020) 9 SCC 644 argues that compensation for loss of consortium to the mother and children at the rate of 40% each ought to be granted.

3. He has also prayed for enhancement of funeral expenses to Rs.15,000/- and loss of estate at the rate of Rs.15,000/- also.

4. Sri K.Sai Mohan Rao, learned counsel appearing for the appellant-mother of the deceased, in MACMA No.2771 of 2016, while supporting the submissions for enhancement of the compensation payable also prays that proportionate share granted to his client be enhanced.

5. On the other hand, learned counsel appearing for the Insurance Company submits that future prospects ought to be at the rate of 30% instead of 40%. He further submits that loss of consortium is to be restricted to Rs.70,000/- only. In view of the number of dependants, namely wife, mother and two children, he argues that the personal expenses ought to have been calculated as 1/3rd of the actual salary.

6. We have considered the rival submissions of the parties.

7. With regard to future prospects, the Hon’ble Apex Court in Pranay Sethi (supra 1), held as follows:

“59.3. While determining the income, an addition of 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made. The addition should be 30%, if the age of the deceased was between 40 to 50 yeaers. In case the deceased was between the age of 50 to 60 years, the addition should be 15%.

Actual salary should be read as actual salary less tax.

59.4. In case the deceased was self-employed or on a fixed salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of 40 to 50 years and 10% where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component.”

8. With regard to the issue of loss of consortium, in Somwati (supra 2), the Hon’ble Apex Court held as follows:

“35. The word “consortium” has been defined in Black’s Law Dictionary, 10th Edn. The Black’s Law Dictionary also, simultaneously, notices the filial consortium, parental consortium and spousal consortium in the following manner:

“Consortium 1. The benefits that one person, esp. A spouse, is entitled to receive from another, including companionship, cooperation, affection, aid, financial support, and (between spouses) sexual relations a claim for loss of consortium.

.Filial consortium A child’s society, affection, and companionship given to a parent.

.Parental consortium A parent’s society, affection and companionship given to a child.

.Spousal consortium A spouse’s society, affection and companionship given to the other spouse.”

36. In Magma General Insurance Co.Ltd. V. Nanu Ram [(2018)18 SCC 130