[07.09.2020] – Compensation under Motor Vehicles Act

Brief: The Supreme Court today held that loss of consortium can also be awarded to children and parents and is not limited to wife [para. 34 & 42]. The Court also held that once compensation for loss of consortium is awarded no compensation for loss of love and affection can be awarded [para. 34, 35, 40].

14. In all the appeals, only issue to be considered is with regard to award of compensation to the claimant under two heads, i.e., (a)loss of consortium and (b) loss of love and affection. With regard to ‘consortium’, the question is as to whether it is only the wife who is entitled for consortium or the consortium can be awarded to children and parents also.

34. The Three-Judge Bench in the above case approved the comprehensive interpretation given to the expression ‘consortium’ to include spousal consortium, parental consortium as well as filial consortium. Three-Judge Bench however further laid down that ‘loss of love and affection’ is comprehended in ‘loss of consortium’, hence, there is no justification to award compensation towards ‘loss of love and affection’ as a separate head.

35. The Constitution Bench in Pranay Sethi has also not under conventional head included any compensation towards ‘loss of love and affection’ which have been now further reiterated by threeJudge Bench in United India Insurance Company Ltd. (supra). It is thus now authoritatively well settled that no compensation can be awarded under the head ‘loss of love and affection’.

40. We, thus, found the impugned judgments of the High Court awarding consortium to each of the claimants in accordance with 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 award of compensation under separate head ‘loss of love and affection’. The appeal filed by the appellant deserves to be allowed insofar as the award of compensation under the head ‘loss of love and affection’.

42. This Court in the above case confined its consideration towards the income of the deceased and there was neither any claim nor any consideration that the consortium should have been paid to other legal heirs also. There being no claim for payment of consortium to other legal heirs, this Court awarded Rs.40,000/- towards consortium. No such ratio can be deciphered from the above judgment that this Court held that consortium is only payable as a spousal consortium and consortium is not payable to children and parents.

45. In 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 law.