Each dependent is individually entitled to compensation for loss of consortium.

Chintaram Khadiya died from injuries sustained in a motor accident on 4 September 2023, allegedly caused by the rash and negligent driving of respondent No. 1, who was also the owner of the offending motorcycle.

His widow and two minor sons filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation of ₹40,24,000.

The Motor Accident Claims Tribunal assessed the deceased’s monthly income at ₹9,960, added 25% towards future prospects, deducted one-third for personal expenses, applied a multiplier of 13, and awarded ₹12,94,800 towards loss of dependency.

It granted a further ₹84,700 under conventional heads and awarded total compensation of ₹13,79,500 with interest at 6% per annum.

In appeal under Section 173 of the Motor Vehicles Act, the claimants did not challenge the loss-of-dependency calculation and confined their challenge to the amount awarded towards loss of consortium.

Whether compensation for loss of consortium is payable separately to each dependent/claimant rather than as a consolidated amount.

Whether the amounts awarded towards loss of estate and funeral expenses required enhancement in accordance with the applicable conventional-head principles.

The Court applied Sections 166 and 173 of the Motor Vehicles Act, 1988, governing the claim for compensation and the statutory appeal against the Tribunal’s award.

Relying on Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, it accepted the established methodology concerning deduction for personal expenses and application of the multiplier.

Under National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, compensation under conventional heads is subject to legally recognised amounts and periodic enhancement.

Applying Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram, (2018) 18 SCC 130, the Court held that each individual dependent is entitled to separate compensation for loss of consortium, and fixed the amount payable to each claimant at ₹48,000.

The appellants expressly accepted the Tribunal’s computation of loss of dependency and challenged only the consolidated consortium award.

The Court held that consortium is an individual loss suffered by each eligible dependent and therefore could not be granted merely as a single lump-sum amount for all three claimants.

Accordingly, each of the widow and two minor sons was awarded ₹48,000, totalling ₹1,44,000.

The Court also found the Tribunal’s awards for loss of estate and funeral expenses to be inadequate and revised each head to ₹18,000.

Retaining the loss of dependency at ₹12,94,800, the Court recalculated the total compensation at ₹14,74,800.

The total compensation was enhanced from ₹13,79,500 to ₹14,74,800, resulting in an enhancement of ₹95,300 payable in addition to the amount awarded by the Tribunal.

The enhanced amount shall carry interest at 6% per annum from the date of the claim petition until realisation.

The Tribunal’s award was modified to that extent, with all other conditions remaining unchanged.

The Registry was directed to communicate the enhanced amount to the claimants in Hindi, with assistance from para-legal workers and coordination with the concerned Legal Aid Secretary.