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2026 Supreme(Online)(Kar) 27738
THE HIGH COURT OF KARNATAKA
Rajesh Rai K, J
Insurer – Appellant
Versus
Claimants – Respondent
MFA No. 2965 of 2022 | MFA No. 2894 of 2022
In motor accident compensation claims for a deceased non-earning or elderly individual, loss of love and affection is subsumed within loss of consortium, and an appropriate deduction for personal expenses must be applied when claimants are not dependent on the deceased.
Headnote:The case involves a motor vehicle accident claim where the deceased was 80 years old. The primary legal issue concerns the determination of compensation, specifically the assessment of notional income, personal expense deductions for non-dependent claimants, and the appropriate calculation for loss of consortium versus loss of love and affection. The Court determined that the monthly income should be assessed based on the State Legal Services Authority guidelines for the relevant year and that a 50% deduction for personal expenses is appropriate when claimants are not dependents. Issues framed relate to whether the Tribunal's assessment of income and deduction for personal expenses were legally sustainable and whether awarding compensation under both 'loss of consortium' and 'loss of love and affection' was erroneous. The Ratio Decidendi establishes that 'loss of consortium' inherently includes the deprivation of love and affection, precluding separate awards for both, and that the age-appropriate multiplier must be strictly applied to the income derived from fixed guidelines. The final outcome resulted in the modification of the Tribunal's award, reducing the total compensation amount to Rs.6,72,818/-, carrying interest at 6% per annum.
| Table of Content |
|---|
| 1. overview of the dispute regarding compensation quantum and liability. (Para 1 , 2 , 3 , 4 , 5) |
| 2. methodology for calculating dependency, personal deductions, and heads of loss. (Para 6 , 7 , 8 , 9 , 10) |
| 3. re-determination of compensation and procedural directions for distribution. (Para 11 , 12 , 13 , 14 , 15) |
ORAL JUDGMENT
1. MFA.No.2965/2022 is by the Insurer challenging the judgment and award dated 18.12.2021 passed by the Tribunal in MVC.No.459/2017, whereas MFA.No.2894/2022 is by the claimants seeking enhancement of compensation.
2. It is not in dispute that, as a result of the motor vehicle accident which occurred on 01.11.2017, Basamma w/o late S.M.Ramaiah, a 80 year old died.
3. It is not in dispute that the Insurer is liable to pay the compensation as the offending vehicle was insured. However, learned counsel for the Insurer has contended that the Tribunal, without considering the age of the deceased i.e., 80 years, has wrongly assessed the notional income at Rs.10,250/- and has wrongly deducted 1/4th towards personal expenses since the claimants were not at all the dependents of the deceased. Further, since the loss of consortium inherently includes the deprivation of love and affection, the Tribunal has erred in awarding compensation under both the heads namely loss of consortium and loss of love and affection. Thus, the award of compensation by the Tribunal under all the heads is on the higher side and the same requires interference at the hands of this Court. Accordingly, he prays to allow the appeal filed by the Insurer.
4. Per contra, learned counsel appearing for the claimants has contended that the amounts awarded by the Tribunal under different heads are meager and the same requires to be enhanced by this Court. Accordingly, he prays to allow the appeal filed by the claimants.
5. The Tribunal, on assessment of the evidence adduced before it, has come to the conclusion that the driver of the offending vehicle was responsible for the accident which has resulted in the death of Basamma. The Tribunal has thereafter proceeded to award the following sums as compensation:
| Sl. No. | Particulars | Amount in (Rs.) |
|---|---|---|
| 1. | Medical expenses | 66,818 |
| 2. | Loss of Dependency | 4,61,220 |
| 3. | Loss of Consortium | 2,00,000 |
| 3. | Loss of love and affection | 2,50,000 |
| 4. | Loss of estate | 15,000 |
| 5. | Transportation and funeral expenses | 25,000 |
| Total | 10,18,038 |
6. In order to arrive at the loss of dependency, the Tribunal has determined the monthly income, notionally at Rs.10,250/-. As there is no credible evidence to ascertain the actual monthly income, it would be appropriate and prudent to adopt the monthly income determined by Karnataka State Legal Services Authority, which, for the accident of the year 2017, would be Rs.11,000/-.
7. As rightly contended by the learned counsel for the Insurer, since the claimants are not the dependents of the deceased, it would be just and appropriate to deduct 50% towards personal expenses, which would make her income to be Rs.5,500/- (Rs.11,000 - 50%). The income of the deceased for the purposes of determining the loss of dependency would thus be Rs.5,500/-.
8. As the deceased was aged 80 years, a multiplier of '5' would have to be applied.
9. Consequently, the claimants would be entitled to a sum of Rs.3,30,000/- (5,500 x 12 x 5) towards “loss of dependency”.
10. The claimants, being the family members of the deceased, they would each be entitled to a sum of Rs.48,000/- towards “loss of consortium” i.e., in all Rs.2,40,000/- (48,000 x 5) and they would also be entitled to a sum of Rs.36,000/- under the “conventional heads”. The amount of Rs.2,50,000/- awarded by the Tribunal towards loss of love and affection, in my view, is not just and proper, since the loss of consortium includes deprivation of love and affection.
11. Thus, the claimants, in modification of the impugned award, would be entitled to the following sums:
| Sl. No. | Particulars | Amount (In Rs.) |
|---|---|---|
| 1. | Loss of Dependency | |
