Case Note & Summary
The case arises from a motor accident claim petition filed under Section 166 of the Motor Vehicles Act, 1988, by the legal heirs of a deceased who died in a collision between a motorcycle and a trailer. The Motor Accident Claims Tribunal (Auxi.) at Mrzapur, Ahmedabad, awarded compensation of Rs.2,50,000 for loss of love and affection and applied a 20% rise on the base compensation towards loss of estate and funeral expenses. The Insurance Company appealed, arguing that these awards were exorbitant and contrary to the principles laid down by the Supreme Court in National Insurance Company vs Pranay Shetty (2017) 16 SCC 680. The respondents (claimants) opposed the appeal. The High Court, after hearing both sides, held that the Tribunal's award for loss of love and affection was impermissible as a separate head, and reduced it to Rs.40,000 per claimant (total Rs.80,000). The 20% rise on loss of estate and funeral expenses was set aside, restoring the amounts to Rs.15,000 each. The court also directed that the modified compensation be apportioned between the two claimants in the ratio of 60:40. The appeal was partly allowed, and the judgment and award of the Tribunal were modified accordingly.
Headnote
A) Motor Accident Claims - Compensation - Conventional Heads - Loss of Love and Affection - The Tribunal awarded Rs.2,50,000 for loss of love and affection without assigning reasons, which is contrary to the settled law in National Insurance Company vs Pranay Shetty, (2017) 16 SCC 680, where the Apex Court held that only spousal consortium, parental consortium, and filial consortium are permissible, and no separate head for loss of love and affection exists. The High Court reduced the amount to Rs.40,000 each for the two claimants, totaling Rs.80,000, as per the principles in Pranay Shetty. (Paras 4, 6) B) Motor Accident Claims - Compensation - Conventional Heads - Loss of Estate and Funeral Expenses - The Tribunal awarded a 20% rise on the base compensation towards loss of estate and funeral expenses, which is impermissible as conventional heads are fixed amounts and not subject to future prospects or percentage increases. The High Court set aside the 20% rise and restored the amounts to Rs.15,000 for loss of estate and Rs.15,000 for funeral expenses as per Pranay Shetty. (Paras 4, 6) C) Motor Accident Claims - Compensation - Apportionment - The High Court directed that the modified compensation be apportioned between the two claimants in the ratio of 60:40, with the first claimant receiving 60% and the second claimant receiving 40%, as per the Tribunal's original apportionment. (Para 7)
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in awarding exorbitant compensation under conventional heads, particularly Rs.2,50,000 for loss of love and affection and a 20% rise on loss of estate and funeral expenses, contrary to the principles laid down in National Insurance Company vs Pranay Shetty.
Final Decision
The appeal is partly allowed. The judgment and award dated 29.01.2022 passed by the Motor Accident Claims Tribunal (Auxi.) Mrzapur at Ahmedabad in MACP No.1035 of 2013 is modified. The amount of Rs.2,50,000 awarded for loss of love and affection is reduced to Rs.80,000 (Rs.40,000 each to the two claimants). The 20% rise on loss of estate and funeral expenses is set aside, and the amounts are restored to Rs.15,000 for loss of estate and Rs.15,000 for funeral expenses. The modified compensation shall be apportioned between the two claimants in the ratio of 60:40. The Insurance Company is directed to deposit the modified amount with accrued interest within eight weeks.
Law Points
- Compensation under Motor Vehicles Act
- 1988 must be computed strictly in accordance with settled principles
- conventional heads like loss of consortium
- loss of estate
- and funeral expenses are fixed amounts
- no separate award for loss of love and affection is permissible
- future prospects are not applicable to conventional heads.
