Facts
The appellants, comprising the widow and five children (three of whom are minors) of the deceased Ajay Tirkey, filed an appeal under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of the compensation awarded by the Motor Accident Claims Tribunal, Jashpur.
Source reference: para 1By an award dated 04/11/2019, the Tribunal had granted a total compensation of Rs. 14,87,500/-.
Source reference: para 1The appellants contended that the Tribunal erred by granting "loss of consortium" only to the widow (Appellant No. 1) instead of awarding it to all six claimants individually.
Source reference: para 2The Insurance Company (Respondent No. 3) conceded that the appellants were entitled to individual consortium based on prevailing Supreme Court precedents.
Source reference: para 3Issues
1. Whether each claimant/appellant is entitled to a separate award for "loss of consortium" under the prevailing motor accident compensation law.
Source reference: para 2, 5Law Applied
Sarla Verma & Ors. v. Delhi Transport Corporation & Ors. (2009) 6 SCC 1215 regarding the multiplier and deduction methods.
Source reference: para 6National Insurance Company Ltd. v. Pranay Sethi (2017) 16 SCC 680 concerning conventional heads and future prospects.
Source reference: para 6Magma General Insurance Company Ltd. v. Nanu Ram alias Chuhru Ram & Ors. (2018) 18 SCC 130, which expanded "consortium" to include spousal, parental, and filial consortium, entitling each dependent to Rs. 40,000/-.
Source reference: para 3, 6Reasoning
The Court observed that the Claims Tribunal had restricted the "loss of consortium" to a single payment of Rs. 40,000/- awarded only to the wife.
Source reference: para 5Applying the mandate in Nanu Ram, the Court determined that since there are six claimants (the wife and five children), each is legally entitled to Rs. 40,000/- under the head of consortium.
Source reference: para 5-6The Court recalculated the compensation: maintaining the monthly income at Rs. 9,000/-, adding 25% for future prospects, and applying a 1/4th deduction for personal expenses alongside a multiplier of 14.
Source reference: para 6By increasing the total consortium from Rs. 40,000/- to Rs. 2,40,000/- (Rs. 40,000 x 6), the total compensation was adjusted from Rs. 14,87,500/- to Rs. 16,87,500/-.
Source reference: para 6-7Holding
The High Court allowed the appeal and modified the impugned award, enhancing the compensation by an additional amount of Rs. 2,00,000/-, bringing the total to Rs. 16,87,500/-.
The Court directed Respondent No. 3 (National Insurance Co. Ltd.) to deposit the enhanced amount within three months from the date of the order, with a right to recover the same from the owner and driver of the offending vehicle.
Source reference: para 7The additional amount shall carry an interest rate of 9% per annum effective from the date the claim application was filed (27/10/2018) until realization.
Source reference: para 7All other conditions of the original award remained intact.
Source reference: para 7-8Original Court PDF
SMT. ELISBA TIRKEYvsJAGMOHAN RAM
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