Facts
On July 6, 2010, Sh. Charanpreet Singh was traveling as a pillion rider on a motorcycle when an offending truck, driven in a rash and negligent manner, hit the vehicle at Najafgarh Road, Delhi
Source reference: p. 1Singh sustained fatal injuries and passed away
Source reference: p. 1The deceased was 22 years of age at the time of the accident
Source reference: p. 2On July 24, 2014, the Motor Accident Claims Tribunal (MACT) awarded the legal representatives of the deceased compensation of Rs. 55,35,000/- with interest @ 7.5% per annum
Source reference: p. 1The Insurance Company filed the present appeal seeking a reduction and alignment of the award with prevailing legal principles
Source reference: p. 2Issues
1. Whether the compensation awarded by the MACT under conventional heads and future prospects required modification in accordance with established precedents
Source reference: p. 22. Whether "loss of love and affection" can be granted as a separate head of compensation
Source reference: p. 2Law Applied
The Court primarily applied the principles of National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680 regarding the standardization of conventional heads and the calculation of future prospects based on the age of the deceased
Source reference: p. 2It further relied on United India Insurance Co. Ltd. v. Satinder Kaur (2021) 11 SCC 780, which held that compensation for "loss of love and affection" is not permissible as a separate head when consortium is awarded
Source reference: p. 2Reasoning
The Court analyzed the MACT’s award against the standards set in Pranay Sethi and Satinder Kaur.
Source reference: p. 2First, the Court determined that because the deceased was 22 years old, the addition for future prospects must be 40% of the income, rather than the 50% granted by the MACT
Source reference: p. 2Second, the Court eliminated the Rs. 1,00,000/- award for "loss of love and affection," noting it is legally untenable under current precedent
Source reference: p. 2Third, the Court adjusted the conventional heads: funeral expenses were reduced from Rs. 25,000/- to Rs. 15,000/-, and loss of estate was increased from Rs. 10,000/- to Rs. 15,000/-
Source reference: p. 2Finally, the Court awarded "loss of consortium" to the three claimants (father, mother, and sister) at Rs. 40,000/- each, totaling Rs. 1,20,000/-, a head which the MACT had previously omitted
Source reference: p. 2-3These adjustments resulted in a revised total dependency and conventional award calculation
Source reference: p. 3Holding
The Court partially allowed the appeal, reducing the total compensation from Rs. 55,35,000/- to Rs. 51,89,928/-
The Court ordered that the surplus amount of Rs. 3,45,072/- be refunded to the Insurance Company with proportionate interest
Source reference: p. 3The remaining balance deposited with the Registrar General was directed to be released to the claimants as per the original MACT scheme
Source reference: p. 3Statutory deposits, if any, were ordered to be refunded to the appellant
Source reference: p. 4Original Court PDF
National Insurance Co LtdvsPrabhjot Singh & Ors
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