Compensation For Motor Accident Death Should Include Compensation Under Conventional Heads Including Loss Of Consortium: Telangana High Court

Brief facts of the case

The claimants who are the husband and children of the deceased filed a petition under Section 166 of the Motor Vehicles Act claiming compensation of Rs. 4,50,000/- for the death of the deceased who died in a motor accident. It was stated that due to rash and negligent driving of the vehicle driver, the inmates of the vehicle including the deceased sustained grievous injuries. The deceased was aged about 41 years and was earning Rs. 4,500/- per month as maid servant. Hence, the claimants filed claim petition against the owner and insurer of the car.

The Tribunal awarded compensation of Rs. 2,80,000/- with proportionate costs and interest at 7.5% per annum from the date of petition till realisation, payable by the owner of the vehicle (as the terms of insurance policy were violated).

The claimants filed the appeal challenging the quantum of compensation awarded by the Motor Accidents Claim Tribunal. It was also stated that even though the deceased was a 'gratuitous passenger', the Insurance Company is liable to pay the awarded sum to the claimants and then to recover the said sum from the insured. 

Issue

Whether the claimants are entitled for enhancement of compensation?

Whether pay and recovery can be ordered against the insurer? 

Court's ruling

The court observed that the Tribunal had after considering the age, avocation of the deceased rightly awarded an amount of Rs. 2,80,000/- under the head loss of income, which needs no interference.

However, the court noted that in National Insurance Company Limited v. Pranay Sethi and Ors., 2017, the Supreme court had held that "the reasonable figures on conventional heads, namely, loss of estate, loss of consortium, and funeral expenses should be Rs. 15,000/- , Rs. 40,000/- and Rs. 15,000/- respectively."

The court noted that the Tribunal has not awarded any amount under conventional heads and therefore, an amount of total Rs. 70,000/- under conventional heads needs to be paid to claimants. Thus, in all claimants are entitled to Rs. 3,50,000/-.

So far as the second issue is concerned, the Court noted in Manuara Khatun v. Rajesh Kr. Sing it was held that the direction to the Insurance Company, being the insurer of the offending vehicle which was found involved in causing accident due to negligence of its driver needs to be issued directing them to first pay the awarded sum to the claimants and then recover the paid awarded sum from the owner of the offending vehicle in execution proceedings.

Accordingly, the compensation amount awarded by tribunal was enhanced and Insurance Company was directed to deposit the said amount to the credit of the claimant along with accrued interest within two months, and then recover the said amount from the vehicle owner.

Cause Title: V. SHIVAJI & ORS. v. K. MURALI & ANR.

Citation: 2022 LiveLaw (Tel) 14