Madras High Court
Transport, Maritime, and Aviation LawInsurance Law

Omitted consortium and affection awards outweighed the excess future-prospects addition, so compensation was not reduced.

THE SBI INSURANCE COMPANY LT vs INDIRA

Madras High CourtJUDGMENT: September 28, 20262 MIN READSOURCE JUDGMENT
Omitted consortium and affection awards outweighed the excess future-prospects addition, so compensation was not reduced.. THE SBI INSURANCE COMPANY LT vs INDIRA. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

On 11 November 2016, Rajendran, a mason, died after a collision between his two-wheeler and the insured vehicle.

Source reference: pp. 2–4, paras. 2.1–2.2, 3.3–3.4, 4.1

His dependants sought compensation before the Motor Accident Claims Tribunal.

Source reference: pp. 2–4, paras. 2.1–2.2, 3.3–3.4, 4.1

The Tribunal awarded ₹10,13,000 in the death claim, including 10% towards future prospects.

Source reference: pp. 2–4, paras. 2.1–2.2, 3.3–3.4, 4.1

The insurer appealed, contending that this addition was impermissible because Rajendran was 65 years old

Source reference: pp. 2–4, paras. 2.1–2.2, 3.3–3.4, 4.1
02

Issues

Whether the Tribunal erred in adding 10% towards future prospects when assessing compensation for the deceased, who was 65 years old

Source reference: p. 4, para. 4.1; p. 6, para. 7.1

Whether the insurer’s challenge warranted reduction of the compensation, considering the Tribunal had not awarded certain conventional heads claimed by the dependants

Source reference: pp. 5–6, paras. 5.1, 7.2–7.3
03

Law Applied

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against an award of the Motor Accident Claims Tribunal.

Source reference: p. 1

The Court considered the principles in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 6 SCC 680, concerning the assessment of future prospects and conventional heads of compensation

Source reference: pp. 4–6, paras. 4.1, 5.1, 7.1–7.3

The judgment does not set out a more detailed formulation of those principles.

Source reference: pp. 4–6, paras. 4.1, 5.1, 7.1–7.3
04

Reasoning

The Court accepted that the Tribunal had added 10% towards future prospects without properly applying Pranay Sethi, given the deceased’s age of 65

Source reference: p. 6, para. 7.1

However, it also found that the Tribunal had not awarded ₹40,000 each towards loss of love and affection to the claimants and ₹40,000 towards consortium to the deceased’s wife

Source reference: p. 6, para. 7.2

In view of those omissions, the Court concluded that the insurer’s objection did not justify reducing the award; applying the relevant principles could instead warrant a higher amount

Source reference: p. 6, para. 7.3
05

Holding

The Court held that the insurer had not established that the Tribunal’s award was excessive and dismissed the appeal, confirming the award of ₹10,13,000

It directed the insurer to deposit the award amount, if not already deposited, within six weeks of receiving the order; the claimants may withdraw their apportioned shares, subject to payment of any necessary court fee.

Source reference: p. 7, para. 9.1

No costs were awarded, and the connected miscellaneous petition was closed

Source reference: p. 7, para. 9.1
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Motor Vehicles Act, 19881

Madras High Court

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THE SBI INSURANCE COMPANY LTvsINDIRA

Madras High Court · September 28, 2026

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