Supreme Court Allows Appeal by Legal Representatives of Deceased Driver in Motor Accident Claim — Restores Tribunal Award of Rs.23,07,000. High Court's Reduction of Income and Consortium Set Aside Based on Precedents on Notional Income and Consortium Entitlement.

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Case Note & Summary

The appellants, legal representatives of a deceased truck driver, sought compensation for his death in a motor accident on 08.05.2014. The Motor Accidents Claims Tribunal awarded Rs.23,07,000, adopting a monthly income of Rs.10,000, with future prospects, and granting loss of consortium to the wife, children, and parents. The High Court reduced the income to Rs.4,076 based on minimum wages and restricted consortium to the wife, lowering the award to Rs.12,34,105. The Supreme Court, relying on Ramachandrappa v. Royal Sundaram Alliance Insurance Co. Ltd, held that a driver of a heavy vehicle would earn at least Rs.10,000 per month in 2014, and citing New India Assurance Company v. Somwati and Ors., affirmed that children and parents are entitled to loss of consortium. Since no appeal was filed by the claimants, the Court restored the Tribunal's award without enhancement, directing disbursement within two months with apportionment and fixed deposits for minors.

Headnote

A) Motor Accident Compensation - Notional Income - Deceased Driver - Income of Rs.10,000 per month accepted for a driver of heavy vehicle in 2014 based on Ramachandrappa v. Royal Sundaram Alliance Insurance Co. Ltd - Held that the Tribunal's assessment of income was correct and the High Court erred in reducing it (Paras 4-5).

B) Motor Accident Compensation - Loss of Consortium - Entitlement of Children and Parents - New India Assurance Company v. Somwati and Ors. - Held that children and parents are also entitled to compensation for loss of consortium, and the Tribunal's award to them was retained (Paras 4-5).

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Issue of Consideration

Whether the High Court was justified in reducing the income of the deceased driver from Rs.10,000 to Rs.4,076 per month and in restricting loss of consortium to the wife only.

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Final Decision

The Supreme Court allowed the appeal, set aside the High Court order, and restored the Tribunal's award of Rs.23,07,000 with interest. The insurance company was directed to deposit the amount within two months, to be apportioned equally among the wife, children, and parents, with minor children's shares kept in fixed deposit.

Law Points

  • Motor accident compensation
  • notional income
  • loss of consortium to children and parents
  • restoration of tribunal award
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Case Details

2025 INSC 706

Civil Appeal No. _______ of 2025 [@ Special Leave Petition (C) No.10822 of 2021]

2025-05-15

Sudhanshu Dhulia, K. Vinod Chandran

2025 INSC 706

Hansa Devi & Ors.

SBI General Insurance Company Limited & Anr.

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Nature of Litigation

Civil appeal against High Court order reducing compensation in a motor accident claim.

Remedy Sought

Appellants sought restoration of the Tribunal's award of compensation.

Filing Reason

The High Court reduced the income of the deceased driver and restricted loss of consortium to the wife only.

Previous Decisions

Tribunal awarded Rs.23,07,000; High Court reduced to Rs.12,34,105.

Issues

Whether the High Court erred in reducing the deceased's monthly income from Rs.10,000 to Rs.4,076. Whether children and parents are entitled to loss of consortium.

Submissions/Arguments

Appellants argued that the income of Rs.10,000 per month for a driver in 2014 was justified based on Ramachandrappa. Appellants contended that children and parents are entitled to loss of consortium as per Somwati.

Ratio Decidendi

The notional income of a driver of a heavy vehicle in 2014 should be at least Rs.10,000 per month, and children and parents are entitled to loss of consortium in motor accident claims.

Judgment Excerpts

We find no reason to accede to the reduction of income as done by the High Court. Insofar as the loss of consortium, it has been held in New India Assurance Company v. Somwati and Ors. that even the children and the parents are entitled to compensation for loss of consortium.

Procedural History

The Motor Accidents Claims Tribunal awarded Rs.23,07,000. The Insurance Company appealed to the High Court, which reduced the award to Rs.12,34,105. The claimants appealed to the Supreme Court by special leave.

Acts & Sections

  • Motor Vehicles Act, 1988:
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