IN THE HIGH COURT OF KERALA AT ERNAKULAM
SHOBA ANNAMMA EAPEN, j.
United India Insurance Company Limited - Appellant
Versus
B. Biju - Respondents
MACA No. 1907 of 2018
Decided on : 26-09-2024
(A) Motor Vehicles Act, 1988 - Sections 166 and 168 - Appeal by insurer against compensation awarded by tribunal - Claimants sought enhancement of compensation - Tribunal awarded Rs.27,48,080/- with interest @9% per annum - Insurer disputed quantum, claiming duplicity in compensation for loss of consortium and love and affection - Court modified compensation based on established legal precedents. (Paras 2-7)
(B) Compensation for loss of dependency - Court recalculated dependency compensation, recognizing emotional ties beyond financial dependence - Appropriate deduction for personal expenses determined as one-fourth. (Paras 5.3)
(C) Funeral expenses - Court reduced awarded amount based on established guidelines. (Paras 5.4)
Facts of the case:
The deceased was hit by a mini bus while riding her scooter, resulting in fatal injuries. Claimants included her husband, minor children, and parents, seeking Rs.70,97,000/- in compensation.
Findings of Court:
The tribunal's award was modified to include an additional Rs.98,135/- in compensation, with interest from the date of petition.
Issues: The main issues included the appropriateness of compensation for loss of consortium versus love and affection, and the calculation of loss of dependency.
Ratio Decidendi: The court emphasized that compensation for loss of consortium precludes additional compensation for loss of love and affection, and clarified the calculation of dependency compensation based on emotional ties.
Result: Appeal and cross objection allowed in part.
JUDGMENT :
The appeal has been filed by the 2nd respondent insurer in O.P (MV) No.132 of 2011 on the file of the Addl. Motor Accidents Claims Tribunal-III, Thiruvananthapuram. The respondents in the appeal were the claimants before the tribunal. The claimants in the said OP (MV) have filed Cross Objection No.133 of 2021 in the appeal.
2. The brief facts of the case is as follows:- On 03.11.2010 at about 10.45 am, while the deceased was riding her Kinetic Honda scooter bearing Registration No.KL-01-T-5796 through Maruthamkuzhy – Sasthamangalam Road, a mini bus bearing registration No.KL-01-N-9205, driven by one Saji S., in a rash and negligent manner, hit against the scooter. As a result, she sustained serious injuries and succumbed to the injuries. The 1st petitioner was the husband, 2nd & 3rd petitioners were the minor son and daughter of the deceased, respectively. The 4th & 5th petitioners were the mother and father of the deceased respectively. The 1st respondent was the owner and 2nd respondent was the insurer of the offending vehicle. The claimants approached the tribunal claiming a total compensation of Rs.70,97,000/-, which was limited to Rs. 52,00,000/-.
3. The 1st respondent owner was set exparte before the Tribunal. The 2nd respondent insurer filed a written statement, admitting the policy, but disputing the quantum of compensation claimed. Before the tribunal, no oral evidence was adduced on either side. Exts.A1 to A11 were marked on the side of the claimants. No documents were marked from the side of the respondents. The tribunal, after analysing the pleadings and materials on record, awarded a sum of Rs.27,48,080/- as compensation under different heads with interest @9% per annum from the date of petition till realization, against the respondent insurer. Challenging the quantum of compensation awarded by the tribunal, the 2nd respondent insurer has come up with the appeal. The claimants have filed Cross Objection No.133 of 2021 in the appeal, seeking enhancement of compensation awarded by the tribunal.
4. Heard the learned standing counsel appearing for the insurance company and the learned counsel for the cross objectors.
5. The learned standing counsel appearing for the insurance company as well as the learned counsel for the cross objectors claims modification mainly under the following heads:
5.1. Loss of love and affection/ loss of consortium -
The learned standing counsel appearing for the Insurance Company submitted that while awarding compensation, the tribunal has awarded an amount of Rs. 2,00,000/- towards loss of love and affection, which is on a higher side. On a perusal of the award, it is found that there are five legal heirs, husband, minor children and parents of the deceased, and it is seen that the tribunal has awarded only an amount of Rs.1,00,000/- towards loss of consortium. The tribunal ought to have been awarded an amount of Rs.2,00,000/- as compensation towards loss of consortium. It is the fact that an amount of Rs.2,00,000/- has been awarded by the tribunal towards loss of love and affection. In New India Assurance Company v. Somwati and others [2020 (5) KLT OnLine 1198 (SC)], it has been held that once compensation is awarded under the head loss of consortium, no amount shall be awarded under the head loss of love and affection, as it would amount to duplication of compensation. Hence, I am inclined to award an additional amount of Rs.1,00,000 under the head loss of consortium and the amount of Rs.2,00,000/- granted under the head loss of love and affection is deleted.
5.2. Loss of estate - The learned standing counsel appearing for the Insurance Company submitted that, while awarding compensation, the tribunal has awarded an amount of Rs.1,00,000/- towards loss of estate, which is on a higher side. Going by the judgment in National Insurance Company Ltd. v. Pranay Sethi [2017 (4) KLT 662 (SC)], the appellants are entitled only for an amount of ₹15,000/- under the head loss of estate. Thus, the
Compensation for loss of consortium precludes additional compensation for loss of love and affection; dependency compensation recalculated based on emotional ties.
Court modified compensation based on recalculated notional income and loss of dependency, adhering to judicial precedents.
Compensation calculation in motor accident claims should incorporate future income prospects, with modifications to the awarded amount reflecting legal precedents.
The court emphasized adherence to established judicial principles for compensation calculation, including proper adjustments for dependency, personal expenses, and conventional heads, leading to a to....
The court recalibrated motor accident compensation using updated income evidence while applying established legal principles regarding future prospects and deducting overly generous tribunal awards.
The court clarified compensation calculation principles in motor accident claims regarding loss of dependency and legal precedents applied for fairest judgments.
The enhancement of compensation involves re-evaluating dependency loss and avoiding duplication in claims.
The court determined compensation based on established precedents and recalculated heads of claims in motor accident compensation cases.
Court modifies compensation awarded to claimants based on established legal principles in motor accident claims.
Siblings can claim compensation for loss of estate despite lack of dependency, and additional compensation for loss of love and affection is warranted.
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