Case Note & Summary
The Supreme Court heard a batch of appeals filed by insurance companies challenging the award of compensation under the heads 'loss of consortium' and 'loss of love and affection' by various High Courts in motor accident claims. The common issue was whether both heads could be awarded simultaneously and whether consortium could be granted to children and parents in addition to the spouse. The Court referred to its Constitution Bench judgment in National Insurance Company Ltd. v. Pranay Sethi, which limited conventional heads to loss of estate (Rs.15,000), loss of consortium (Rs.40,000), and funeral expenses (Rs.15,000). The Court held that loss of love and affection cannot be awarded as a separate head, and consortium is payable only to the spouse, not to children or parents. The Court also noted that in one appeal, the High Court had enhanced compensation under loss of love and affection in an appeal filed by the insurance company without any cross-appeal by the claimants, which was impermissible. The appeals were allowed, and the impugned judgments were set aside to the extent they awarded compensation under loss of love and affection and consortium to multiple claimants.
Headnote
A) Motor Accident Compensation - Conventional Heads - Loss of Consortium and Loss of Love and Affection - Motor Vehicles Act, 1988, Section 166 - The Supreme Court held that after the Constitution Bench judgment in National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680, only three conventional heads are permissible: loss of estate (Rs.15,000), loss of consortium (Rs.40,000), and funeral expenses (Rs.15,000). Loss of love and affection cannot be awarded as a separate head. (Paras 14-17) B) Motor Accident Compensation - Consortium - Entitlement of Spouse Only - Motor Vehicles Act, 1988, Section 166 - The Court ruled that consortium is payable only to the spouse, not to children or parents. Awarding consortium to each claimant (wife, children, parents) is contrary to law. (Paras 14-16) C) Motor Accident Compensation - Enhancement in Appeal by Insurance Company - Without Cross-Appeal by Claimants - The Court noted that in one appeal, the High Court enhanced compensation under loss of love and affection in an appeal filed by the insurance company when claimants had not filed any appeal, which was impermissible. (Para 18)
Issue of Consideration
Whether both 'loss of consortium' and 'loss of love and affection' can be awarded simultaneously, and whether consortium can be granted to children and parents in addition to the spouse.
Final Decision
The Supreme Court allowed the appeals, setting aside the impugned judgments of the High Courts to the extent they awarded compensation under the head 'loss of love and affection' and awarded consortium to each claimant (children and parents). The Court held that only the spouse is entitled to consortium of Rs.40,000, and loss of love and affection cannot be awarded as a separate head. The matters were remitted to the respective High Courts or Tribunals for re-determination of compensation in accordance with law.
Law Points
- Conventional heads under Motor Vehicles Act
- 1988 are limited to loss of estate
- loss of consortium
- and funeral expenses
- loss of love and affection cannot be awarded separately
- consortium is payable to spouse only
- not to children or parents
- enhancement of compensation in appeal by insurance company without cross-appeal by claimants is impermissible.
