On 7th Sep 2020, The Supreme Court in the case of The New India Assurance Company Limited v. Somwati comprising of Justice Ashok Bhushan and R. Subhash Reddy in their Judgment stated that the in case of Motor Accident Claims, Compensation for loss of Consortium can be awarded to Children and Parent also.
Facts
Appeals have been filed by three Insurance Companies, i.e., New India Assurance Company Limited, Cholamandalam MS General Insurance Company Ltd., and The Oriental Insurance Company Ltd. questioning the judgments of the High Courts arising out of the award by the Motor Accident Claims Tribunal (MACT) with regard to the compensation awarded in favor of the claimants under two heads, i.e., “Loss of Consortium” and “loss of love and affection.”
Issue
With regard to ‘consortium’, the question is as to whether it is only the wife who is entitled to a consortium or the consortium can be awarded to children and parents also.
Appellant’s Contention’s
Appellant’s submitted before the Court that the amount granted under the head ‘loss of love and affection’ is whole without jurisdiction and the further amount granted under the head ‘consortium’ could not be more than Rs.40,000/- and the amount of ‘consortium’ is only payable to the wife who is entitled to Rs.40,000/- and the Tribunals and the High Courts committed error in awarding the amount of consortium to each of the claimants, i.e., wife, children, and parents.
Appellant further submitted that even after the Constitution Bench Judgment, this Court has allowed amounts under conventional heads as ‘loss of state’ Rs.15,000/-, ‘consortium’ Rs.40,000/- and ‘funeral expenses’ Rs.15,000/-.
Claimants Submissions
The claimants refuting the submissions of counsel for the appellant contends that the award to each of the claimants at the rate of Rs.40,000/- under the head ‘consortium’ is in accordance with the law laid down by this Court. It is submitted that the award of compensation under the head ‘consortium’ cannot be given a narrow interpretation. The amount under the head ‘consortium’ has rightly been given not only to the wife but children and parents.
Supreme Court Findings & Order
The Court in its Findings stated that:
The expression ‘compensation’ is a comprehensive term that includes a claim for the damages. Compensation is by way of atonement for the injury caused.
The claimant in a claim for an award of compensation under Section 166 of Motor Vehicles Act, 1988, is entitled to just compensation. Just compensation has to be equitable and fair. The loss of life and limb can never be compensated in an equal measure but the statutory provisions under Motor Vehicles Act is a social piece of legislation which has been enacted with intent and object to facilitate the claimants to get redress for the loss of the member of the family, compensate the loss in some measure and to compensate the claimant to a reasonable extent
Further, the Court referred to the Black's Law Dictionary and stated that the “The word ‘consortium’ has been defined in Black’s Law Dictionary, 10th edition. Black’s law dictionary also simultaneously notices the filial consortium, parental consortium, and spousal consortium in the following manner:-“
"Consortium: 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 gave to the other spouse.”
The Court in its Judgment stated that the, “impugned judgments of the High Court awarding consortium to each of the claimants in accordance with the law which does not warrant any interference in this appeal.” We, however, accept the submissions of learned counsel for the appellant that there is no justification for the award of compensation under separate head ‘loss of love and affection’.
The order of the High Court awarding compensation towards ‘loss of love and affection’ at the rate of Rs.50,000/- to each of the claimants is unjustified which is being set aside in this appeal.
The Court further stated that “in a result, all the appeals are partly allowed. The award of compensation under the conventional head ‘loss of love and affection’ is set aside. The Motor Accident Claims Tribunals shall recompute the amount payable and take further steps in accordance with the law.”
Read Judgment @Latestlaws.com
