IN THE HIGH COURT OF KERALA AT ERNAKULAM
EASWARAN S., J.
National Insurance Co.Ltd. - Appellant
Versus
Sadanandan, S/O.Krishnan - Respondent
MACA No. 954 of 2021
Decided on : 11-04-2025
(A) Motor Vehicles Act, 1988 - Compensation for loss of dependency - Notional income of deceased fixed at Rs.18,000/- per month with 10% future prospects, recalculated loss of dependency awarded Rs.3,55,600/- after deleting dual compensation for love and affection - Insurance company challenged the tribunal's award on grounds of income fixation and dual compensation. (Paras 4, 15)
(B) Compensation - The court held that the tribunal's fixation of notional income must align with the Minimum Wages Act, and dual compensation under love and affection and loss of consortium is impermissible. (Paras 14, 15)
Facts of the case:
The claimants are the legal heirs of Remani, who died in a road traffic accident on 21.4.2018. The deceased was a skilled worker earning Rs.18,000/- per month, and the tribunal initially awarded compensation based on a lower notional income. (Paras 2, 3)
Findings of Court:
The court partly allowed the appeal, refixing the notional income at Rs.18,000/- per month, granting future prospects, and recalculating the loss of dependency while deleting the compensation for love and affection. (Paras 15)
Issues: The main issues were the appropriate fixation of notional income and the permissibility of dual compensation under love and affection and loss of consortium. (Paras 4, 14)
Ratio Decidendi: The court emphasized that the notional income must reflect the minimum wage standards and that claimants cannot receive dual benefits for loss of consortium and love and affection. (Paras 14, 15)
Result: The appeal is partly allowed, and the compensation is recalculated accordingly.
JUDGMENT :
This appeal is preferred by the Insurance Company aggrieved by the award passed by the Addl.Motor Accidents Claims Tribunal, Ernakulam in OP(MV) No.1344/2018.
2. The brief facts necessary for the disposal of the appeal are as follows:
The claimants are the legal heirs of one Remani, who died in a road traffic accident on 21.4.2018 at 5 pm. While she was crossing Alappuzha-Ernakulam NH Zebra line, a KSRTC bus bearing registration No.KL-15/7317 hit on the scooter. Due to the impact of the accident, the deceased fell down and sustained fatal injuries. Though she was taken to Lakeshore Hospital, Nettoor, she succumbed to the injuries on the same day.
3. The claimants contended that the deceased was a cook in a hotel and was earning a sum of Rs.18,000/- per month. In support of their contention, the claimants produced Exts.A1 to A3 documents.
The tribunal, on appreciation of evidence, found that the deceased Remani had to be treated as a skilled worker and, therefore, proceeded to fix her notional income at Rs.13,500/- per month. Since the deceased was survived by three dependants, 1/3rd of her income was deducted towards personal and living expenses. The tribunal, in addition to the above, granted loss of estate and loss of consortium to the 1st claimant and also Rs.40,000/- each under the head love and affection to the claimants 2 and 3. Thus, the tribunal awarded the following compensation:
| Sl. No. | Head of claim | Amount Claimed (Rs.) | Amount Awarded (Rs.) | Basis Vital details in a nut shell |
| 1 | Parental consortium | Nil | 80000 | 2x40000 (2nd and 3rd petitioner) |
| 2 | Loss of estate | 50000 | 15000 | |
| 3 | Transport to hospital | 10000 | 10000 | |
| 4 | Compensation for love and affection | 100000 | 80000 | 2x40000 (P2 and P3 |
| 5 | Funeral expenses | 25000 | 15000 | |
| 6 | Treatment expenses | 20000 | Nil | |
| 7 | Compensation for loss of dependency | 2000000 | 1306800 | |
| 8 | Compensation for pain and sufferings | 50000 | Nil | |
| 9 | Loss of consortium | 50000 | 40000 | 1st petitioner |
| 10 | Mental shock and agony | 30000 | Nil | |
| Total Claim is limited to Rs.23,00,000/- | 23,35,000 | 15,46,800 |
4. Challenging the quantum of compensation awarded by the tribunal, the insurance company has preferred the present appeal by contending that the notional income adopted by the tribunal is without any rationale and against the principles laid down by the Supreme Court in Ramachandrappa v. The Manager, Royal Sundaram Alliance Insurance Company Ltd. (2011 (13) SCC 236). The insurance company further contended that the tribunal erred egregiously in granting compensation under the head love and affection in addition to the parental consortium granted to the 2nd and 3rd claimants.
5. Heard Sri.P.G.Jayashankar, the learned counsel appearing for the appellant-insurance company, and Smt.K.N.Rajani, the learned counsel appearing for the claimants.
6. On consideration of the rival submissions raised across the bar, this Court is of the considered view that the appeal preferred by the insurance company can only be allowed partly. From the facts narrated above, it is evident that the insurance company questions the quantum of compensation basically on two heads; (a) fixation of notional income, and (b) grant of compensation towards love and affection over and above the compensation granted under the head loss of consortium. Although it is contended that claimants 2 and 3 cannot be considered dependents, this Court is of the view that in the light of the decision of the Supreme Court in National Insurance Company Ltd. v. Birender and Others [(2020) 11 SCC 356] and this Court in United India Insurance Co. Ltd. v. Shalumol [2021 (5) KLT 74], the contention of the insurance company questioning the dependency of claimants 2 and 3 cannot be sustained.
7. As regards the claim that the income fixed by the tribunal is on the higher side, it must be noted by this Court that the accident took place in the year 2018. Therefore, prima facie, this Court is of the view that the income fixed by the tribunal is not proper in terms of the notification issued by the State of Kerala under the provisions of the Minimum Wages
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