‘Loss of Consortium’ in Motor Accident claim can be awarded to children and parents
The Hon’ble Supreme court of India in New India Assurance Co Ltd. V. Somwati [Civil Appeal No. 3093 of 2020] it was held by the Hon’ble court that in case of Motor Accident Claims, Compensation for loss of Consortium can be awarded to Children and Parent also.   The bench of Hon’ble Justice Ashok Bhushan and R. Subhash Reddy while examining the legal question 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” observed that “The expression ‘compensation’ is a comprehensive term which includes a claim for the damages. Compensation is by way of atonement for the injury caused.”   The apex court examined various judgements and noted that “It is relevant to notice the judgment of this Court in United India Insurance Ltd. which was delivered shortly after the above Three-Judge Bench judgment of Sangeeta Arya specifically laid down that both spousal and parental consortium are payable which judgment we have already noticed above.” The court further 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.”  
IN THE CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.3093 OF 2020 ARISING OUT OF SLP(C) NO. 23478 OF 2019 THE NEW INDIA ASSURANCE ...APPELLANT SMT. SOMWATI AND OTHERS ...RESPONDENTS CIVIL APPEAL NO.3094 OF 2020 ARISING OUT OF SLP(C) NO. 4801 OF 2020 THE NEW INDIA ASSURANCE ...APPELLANT SMT. SANGITA AND OTHERS ...RESPONDENTS CIVIL APPEAL NO.3095 OF 2020 ARISING OUT OF SLP(C) NO. 4643 OF 2020 THE NEW INDIA ASSURANCE ...APPELLANT AZMATI KHATOON AND OTHERS ...RESPONDENTS CIVIL APPEAL NO.3096 OF 2020 ARISING OUT OF SLP(C) NO. 5441 OF 2020 CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LIMITED ...APPELLANT UMARANI AND OTHERS ...RESPONDENTS CIVIL APPEAL NO.3097 OF 2020 ARISING OUT OF SLP(C) NO. 6381 OF 2020 THE NEW INDIA ASSURANCE ...APPELLANT SMT. PINKI AND OTHERS ...RESPONDENTS CIVIL APPEAL NO.3098 OF 2020 ARISING OUT OF SLP(C) NO. 7556 OF 2020 THE NEW INDIA ASSURANCE ...APPELLANT NANAK CHAND AND OTHERS ...RESPONDENTS CIVIL APPEAL NO.3099 OF 2020 ARISING OUT OF SLP(C) NO. 8250 OF 2020 THE ORIENTAL INSURANCE SMT. RINKU DEVI AND OTHERS ...RESPONDENTS ...APPELLANT JUDGMENT ASHOK BHUSHAN J These appeals raising common questions of law have been heard together and are being decided by this common judgment. For deciding these appeals it is sufficient to notice the facts in detail in Civil Appeal No … 2020(arising out of SLP(C)No.23478 of 2019) New India Assurance Company Limited Versus Smt. Somwati and Others and brief facts in other appeals All these 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 Motor Accident Claims Tribunal with regard to the compensation awarded in favour of the claimants under two heads i.e. “Loss of Consortium” and “loss of love and Civil Appeal NO … 2020(arising out of SLP(C)No.23478 of 2019) New India Assurance Company Limited versus Smt. Somwati and Others Ram Jiyawan the husband of Smt. Somwati died in a Motor Vehicle accident on 06.12.2001 leaving behind his widow Smt. Somwati and seven minor children. Claim petition No.7 of 2002 was filed under Section 166 of Motor Vehicles Act 1988 claiming compensation of Rs.15 25 000 . The MACT by award dated 22.03.2003 allowed a claim of Rs 1 67 000 with 9% interest. An appeal was filed by Smt. Somwati Devi and others in the High Court being F.A.F.O.No.1894 of 2003. The High Court allowed the appeal of the claimants and awarded a compensation of Rs.12 54 000 . Against the judgment of the High Court dated 25.02.2019 this appeal has been filed by the Insurance Company. The grant of compensation under two heads has been challenged in this appeal i.e. item No.and viii) which are to the following effect: “(vi)Loss of love and affection Rs.4 00 000 Loss of Parental Consortium to Rs.2 80 000 of the impugned judgment which reads as under “Loss of love and affection=Rs 4 00 000 New India Assurance Company Limited Versus Sangita Devi and Others Sanjay Kumar husband of the respondent Sangeeta Devi died of Motor Vehicle accident on 12.01.2015. Claim Petition bearing MACP No.862 of 2016 was filed by the respondents which claim petition was allowed by Motor Accident Claims Tribunal granting a compensation of Rs.17 71 000 with interest of 9%. Claimants filed an appeal in the High Court. The High Court following the judgment of this Court in Magma General Insurance Company ltd. Versus Nanu Ram @ Chuhru Ram and Ors. 2018) 18 SCC 130 granted compensation for loss of love and affection at the rate of Rs.50 000 to each of eight claimants and similarly under the head ‘Loss of consortium’ at the rate of Rs.40 000 to all the eight claimants. Aggrieved by the judgment of the Delhi High Court Insurance Company has filed appeal challenging the order of the High Court Civil Appeal No 2020(arising out of SLP(C)No.46420) New India Assurance Company Limited Versus Azmati Khatoon and Others Mohd. Hasibul Bassan died in a Motor Vehicle accident on 29.10.2007. Claim Petition was filed by respondents which has been allowed by Motor Accident Claims Tribunal granting a compensation of Rs.17 32 776 with interest. The appellant filed an appeal in the High Court. The High Court granted compensation under the head ‘loss of love and affection’ at the rate of Rs.50 000 to each seven claimants and Rs.40 000 each to seven claimants under the head ‘loss of consortium’. Aggrieved by the judgment of the Delhi High Court Insurance Company is in appeal. Civil Appeal No … 2020 Cholamandalam Ms General Insurance Company Limited Versus Umarani and Others The deceased Krishnasamy met with a vehicular accident on 07.09.2014 who subsequently died. Claim petition was filed by the respondents which has been allowed by Motor Vehicle Accident Compensation Tribunal granting compensation of Rs.13 60 000 Appeal was filed by the Insurance Company. The award under the head ‘loss of consortium’ an amount of Rs.One Lakh and award under the head ‘loss of love and affection’ an amount of Rs. Three Lakhs was confirmed by the High Court which is challenged by Insurance Company in this appeal. Civil Appeal No 2020(arising out of SLP(C)No.63820) New India Assurance Company Limited Versus Smt. Pinki and Others 10. One Dinesh Kumar met with a motor vehicle accident on 11.06.2014 and died. Claim Petition filed by the respondents was allowed by the Motor Accident Claims Tribunal granting an amount of Rs.13 01 776 . Claimants filed an appeal before the High Court which enhanced the compensation. The High Court granted compensation under the head ‘loss of love and affection’ Rs.50 000 each to four claimants and under the head ‘loss of consortium’ at the rate of Rs.40 000 each to four claimants. Aggrieved by the judgment of the High Court Insurance Company is in this appeal Civil Appeal No 2020(arising out of SLP(C)No.75520) New India Assurance Company Limited Versus Nanak Chand and Others 11. Gaurav died in a motor vehicle accident on 23.09.2010. Claim petition was filed by the parents of the deceased which was allowed granting compensation of Rs.4 83 348 . Claimants filed an appeal in the High Court which was allowed. The High Court granted compensation of Rs.50 000 each to both the claimants under the head ‘loss of love and affection’ and Rs.40 000 each to both the claimants under the head ‘loss of consortium’ Aggrieved by the judgment of the High Court this appeal has been filed Civil Appeal No 2020(arising out of SLP(C)No.8250 of 2020) The Oriental Insurance Company Limited Versus Smt. Rinku Devi and Others 12. Birbal Kumar met with an accident on 27.07.2008 resulting in his death. Claim petition filed by the respondents claiming Rs.Twenty lakhs was allowed by the Motor Accident Claims Tribunal granting compensation of Rs.5 80 000 . Insurance company filed an appeal. The Tribunal has awarded filial consortium at the rate of Rs.40 000 to each of the claimants i.e. wife two children and father totaling Rs.1 60 000 . The High Court in the appeal filed by the Insurance Company further enhanced the compensation under the head ‘loss of love and affection’ at the rate of Rs.50 000 to each of four claimants i.e. enhancing total amount by Rs. Two Lakhs. Insurance Company aggrieved by the judgment of the High Court has come up with this appeal 13. We have heard learned counsel for the appellant as well as learned counsel for the 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. 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. 15. Learned counsel for the appellants contends that the Constitution Bench of this Court in National Insurance Company Ltd. Versus Pranay Sethi and Others 16 SCC 680 has laid down that there are only three conventional heads namely i)‘loss of estate’ 2 SCC 176. This court considering the concept of compensation under Motor Vehicle Act 1939 laid down following in paragraph 5....The determination of the quantum must answer what contemporary society “would deem to be a fair sum such as would allow the wrongdoer to hold up his head among his among his neighbours and say with their approval that he has done the fair thing”. The amount awarded must not be niggardly since the “law values life and limb in a free society in generous scales”. All this means that the sum awarded must be fair and reasonable by accepted legal standards.” 25. In the above case also this Court awarded the amount under the conventional head of ‘loss of 26. Another judgment which needs to be noted is the judgment of this Court in Sarla Vermaand Others Versus Delhi Transport Corporation and Another 6 SCC 121 in which judgment in paragraph 16 this Court while elaborating the “just compensation” laid down following: 5....”Just compensation is adequate compensation which is fair and equitable on the facts and circumstances of the case to make good the loss suffered as a result of the wrong as far as money can do so by applying the well settled principles relating to award of compensation. It is not intended to be a bonanza largesse or source of profit.” 27. This court also awarded an amount under the head ‘loss of consortium’ to the wife. 28. We need to notice the Constitution Bench judgment in National Insurance Company Ltd.(supra which case notices the earlier judgments of this Court where compensation was awarded towards loss of consortium. In paragraph 46 the following was laid down: 46. Another aspect which has created confusion pertains to grant of loss of estate loss of consortium and funeral expenses. In Santosh Devi the two Judge Bench followed the traditional method and granted Rs.5000 for transportation of the body Rs.10 000 as funeral expenses and Rs.10 000 as regards the loss of consortium. In Sarla Verma the Court granted Rs.5000 under the head of loss of estate Rs.5000 towards funeral expenses and Rs.10 000 towards loss of consortium. In Rajesh9 SCC 54 the Court granted Rs.1 00 000 towards loss of consortium and Rs.25 000 towards funeral expenses. It also granted Rs.1 00 000 towards loss of care and guidance for minor children. The Court enhanced the same on the principle that a formula framed to achieve uniformity and consistency on a socio economic issue has to be contrasted from a legal principle and ought to be periodically revisited as has been held in Santosh Devi6 SCC 421. On the principle of revisit it fixed different amount on conventional heads What weighed with the Court is factum of inflation and the price index. It has also been moved by the concept of loss of consortium. We are inclined to think so for what it states in that regard. We quote:18 SCC 130 the concept of consortium was explained in paragraphs 21 22 and 23 which are as follows: 21. A Constitution Bench of this Court in Pranay Sethi dealt with the various heads under which compensation is to be awarded in a death case. One of these heads is Loss of Consortium. In legal parlance “consortium” is a compendious term which encompasses consortium’ and ‘filial consortium’. The right to consortium would include the company care help comfort guidance solace and affection of the deceased which is a loss to his family. With respect to a spouse it would include sexual relations with the deceased spouse 21.1. Spousal consortium is generally defined as rights pertaining to the relationship of a husband wife which allows compensation to the surviving spouse for loss of “company society cooperation affection and aid of the other in every conjugal relation.” 21.2. Parental consortium is granted to the child upon the premature death of a parent for loss of “parental aid discipline guidance and training.” 21.3. Filial consortium is the right of the parents to compensation in the case of an accidental death of a child. An accident leading to the death of a child causes great shock and agony to the parents and family of the deceased. The greatest agony for a parent is to lose their child during their lifetime Children are valued for their love affection companionship and their role in the family unit 22. Consortium is a special prism reflecting changing norms about the status and worth of actual relationships. Modern jurisdictions world over have recognized that the value of a child’s consortium far exceeds the economic value of the compensation awarded in the case of the death of a child. Most jurisdictions therefore permit parents to be awarded compensation under loss of consortium on the death of a child The amount awarded to the parents is a compensation for loss of the love affection care and companionship of the deceased child 23. The Motor Vehicles Act is a beneficial legislation aimed at providing relief to the victims or their families in cases of genuine claims. In case where a parent has lost their minor child or unmarried son or daughter the parents are entitled to be awarded loss of consortium under the head of Filial Consortium. Parental Consortium is awarded to children who lose their parents in motor vehicle accidents under the Act. A few High Courts have awarded compensation on this count. However there was no clarity with respect to the principles on which compensation could be awarded on loss of Filial Consortium.” 32. A two Judge Bench in Magma General Insurance Company Limited awarded the amount of Rs.40 000 to father and sister of the deceased. Paragraph 24 is as follows: “24. The amount of compensation to be awarded as consortium will be governed by the principles of awarding compensation under ‘Loss of Consortium’ as laid down in Pranay Sethi supra). In the present case we deem it appropriate to award the father and the sister of the deceased an amount of Rs. 40 000 each for loss of 33. A three Judge Bench in United India Insurance Company Ltd. versus Satinder Kaur alias Satvinder Kaur and others SCC Online 410 had reaffirmed the view of two Judge Bench in Magma General insurance Company Ltd. Three Judge Bench from paragraph 53 to 65 dealt with three conventional heads. The entire discussion on three conventional heads of three Judge Bench is as follows: 53. In Pranay Sethi the Constitution Bench held that in death cases compensation would be awarded only under three conventional heads viz. loss of estate loss of consortium and funeral 54. The Court held that the conventional and traditional heads cannot be determined on percentage basis because that would not be an acceptable criterion Unlike determination of income the said heads have to be quantified which has to be based on a reasonable foundation. It was observed that factors such as price index fall in bank interest escalation of rates are aspects which have to be taken into consideration The Court held that 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 was of the view that the amounts to be awarded under these conventional heads should be enhanced by 10% every three years which will bring consistency in respect of these heads a) Loss of Estate Rs. 15 000 to be b) Loss of Consortium 55. Loss of Consortium in legal parlance was historically given a narrow meaning to be awarded only to the spouse i.e. the right of the spouse to the company care help comfort guidance society solace affection and sexual relations with his or her mate. The loss of companionship love care and protection etc. the spouse is entitled to get has to be compensated appropriately. The concept of nonpecuniary damage for loss of consortium is one of the major heads for awarding compensation in various jurisdictions such as the United States of America Australia etc English courts have recognised the right of a spouse to get compensation even during the period of temporary 56. In Magma General Insurance Co. Ltd. v Nanu Ram & Ors. 12 this Court interpreted “consortium” to be a compendious term which encompasses spousal consortium parental consortium as well as filial consortium. The right to consortium would include the company care help comfort guidance solace and affection of the deceased which is a loss to his family With respect to a spouse it would include sexual relations with the deceased spouse 57. Parental consortium is granted to the child upon the premature death of a parent for loss of parental aid discipline guidance and training 58. Filial consortium is the right of the parents to compensation in the case of an accidental death of a child. An accident leading to the death of a child causes great shock and agony to the parents and family of the deceased. The greatest agony for a parent is to lose their child during their lifetime. Children are valued for their love and affection and their role in the family unit 59. Modern jurisdictions world over have recognized that the value of a child’s consortium far exceeds the economic value of the compensation awarded in the case of the death of a child. Most jurisdictions permit parents to be awarded compensation under loss of consortium on the death of a child. The amount awarded to the parents is the compensation for loss of love and affection care and companionship of the 60. The Motor Vehicles Act 1988 is a beneficial legislation which has been framed with the object of providing relief to the victims or their families in cases of genuine claims. In case where a parent has lost their minor child or unmarried son or daughter the parents are entitled to be awarded loss of consortium under the head of Filial Consortium 61. Parental Consortium is awarded to the children who lose the care and protection of their parents in motor vehicle 62. The amount to be awarded for loss consortium will be as per the amount fixed in Pranay Sethihas recognized only three compensation can be awarded viz. loss of estate loss of consortium and funeral 64. In Magma General this Court gave a comprehensive interpretation to consortium to include spousal consortium parental consortium as well as filial consortium. Loss of love and affection is comprehended in loss of consortium 65. The Tribunals and High Courts are directed to award compensation for loss of consortium which is a legitimate conventional head. There is no justification to award compensation towards loss of love and affection as a c) Funeral Expenses Rs. 15 000 to be 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 three Judge 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’. 36. The word ‘consortium’ has been defined in Black’s law Dictionary 10th edition. The Black’s law dictionary also simultaneously notices the filial consortium parental consortium and spousal consortium in following manner: Consortium 1. The benefits that one person esp. A spouse is entitled to receive from another including companionship cooperation affection aid financial support and sexual relations a claim for loss Filial consortium A child s society affection and companionship given to a parent A parent s Parental consortium society affection and companionship given to a child A spouse s Spousal consortium society affection and companionship given to the other spouse.” 37. The Magma General Insurance Company Ltd Supra) as well as United India Insurance Company ltd.(Supra) Three Judge Bench laid down that the consortium is not limited to spousal consortium and it also includes parental consortium as well as filial consortium. In paragraph 87 of United India Insurance Company Ltd.‘consortium’ to all the three claimants was thus awarded. Paragraph 87 is quoted below: 87. Insofar as the conventional heads are concerned the deceased Satpal Singh left behind a widow and three children as his dependants. On the basis of the judgments in Pranay Sethiand Magma General supra) the following amounts are awarded under the conventional heads: i) Loss of Estate: Rs. 15 000 ii) Loss of Consortium a) Spousal Consortium: Rs 40 000 b) Parental Consortium: 40 000 x 3 = Rs. 1 20 000 iii) Funeral Expenses: Rs. 15 000” 38. Learned counsel for the appellant has submitted that Pranay Sethi has only referred to spousal consortium and no other consortium was referred to in the judgment of Pranay Sethi hence there is no justification for allowing the parental consortium and filial consortium. The Constitution Bench in Pranay Sethi has referred to amount of Rs.40 000 to the ‘loss of consortium’ but the Constitution Bench had not addressed the issue as to whether consortium of Rs.40 000 is only payable as spousal consortium. The judgment of Pranay Sethi cannot be read to mean that it lays down the proposition that the consortium is payable only to the wife. 39. The Three Judge Bench in United India Insurance Company Ltd. has categorically laid down that apart from spousal consortium parental and filial consortium is payable. We feel ourselves bound by the above judgment of Three Judge Bench. We thus cannot accept the submission of the learned counsel for the appellant that the amount of consortium awarded to each of the claimants is not sustainable. 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’. 41. We may also notice Three Judge Bench judgment of this Court relied by learned counsel for the appellant i.e. Sangita Arya and others versus Oriental Insurance Company ltd. and others to Rs.10 000 the amount awarded towards loss of love and affection to the minor daughters was reduced from Rs.10 000 to Rs 5 000. However the amount of Rs. 5 000 awarded by the MACT towards funeral expenses was 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 43. It is relevant to notice the judgment of this Court in United India Insurance Ltd. which was delivered shortly after the above Three Judge Bench judgment of Sangeeta Arya specifically laid down that both spousal and parental consortium are payable which judgment we have already noticed 44. We may also notice one more Three Judge Bench judgment of this Court in Civil Appeal No.28820 M.H.Uma Maheshwari and others versus United India Insurance Company Ltd. decided on 12.06.2020 In the above case the Tribunal had granted the amount of Rs.One Lakh towards loss of consortium to the wife and Rs.Three Lakhs for all the appellants towards loss of love and affection. The High Court in the above case had reduced the amount of compensation in the appeal filed by the Insurance Company. The High Court held that by awarding the amount of Rs.One Lakh towards loss of consortium to the wife Tribunal had committed error while awarding Rs.One Lakh to the first appellant towards the head of ‘loss of love and affection’. Allowing the appeal filed by the claimant this Court maintained the order of MACT. 45. In the above judgment although rendered by Three Judge Bench there was no challenge to award of compensation of Rs.One Lakh towards the consortium and Rs.Three Lakhs towards the loss of love and affection. The appeal was filed only by the claimants and not by the Insurance Company. The Court did not pronounce on the correctness of the amount awarded under the head ‘loss of love and 46. We may also notice the additional submission advanced in Civil Appeal No…... 2020 Oriental Insurance Company Ltd. versus Smt.Rinku Devi & Ors. As noted above we have taken the view that 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. We further in the above appeal also set aside the directions of the High Court in paragraph 9 by which statutory amount along with interest accrued thereon was directed to be deposited in AASRA fund. 47. 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. 48. All the appeals are partly allowed accordingly. No costs ( ASHOK BHUSHAN ( R. SUBHASH REDDY NEW DELHI SEPTEMBER 07 2020