2025 INSC 706
SUPREME COURT OF INDIA
DIVISION BENCH
HANSA DEVI AND OTHER
Vs.
SBI GENERAL INSURANCE COMPANY LIMITED AND ANOTHER
( Before : Sudhanshu Dhulia and K. Vinod Chandran, JJ. )
Civil Appeal No. …. of 2025 [@ Special Leave Petition (C) No. 10822 of 2021]
Decided on : 15-05-2025
In motor accident claims, income assessment should reflect prevailing wages and children and parents are entitled to loss of consortium.
A. Motor Vehicles Act, 1988 — Compensation — Fatal accident — Deceased, a truck driver, aged 28 years — Income — Tribunal awarded compensation based on monthly salary of Rs. 10,000/- with 40% future prospects — High Court reduced salary to minimum wages of Rs. 4,076/- with 40% future prospects — Supreme Court restored the Tribunal’s assessment of income of Rs. 10,000/-, reasoning that an unskilled labourer in 2004 was held to earn Rs. 4,500/-, hence a driver of a heavy vehicle in 2014 would reasonably earn Rs. 10,000/ — per month considering marginal and incremental increases. (Paras 2, 3, 4)
B. Motor Vehicles Act, 1988 — Compensation — Fatal accident — Loss of consortium — Tribunal awarded loss of consortium to wife, children, and parents — High Court reduced it to only to the wife — Supreme Court restored the award of loss of consortium to children and parents based on precedent, despite no appeal by claimants against the Tribunal’s award. (Paras 2, 3, 4, 5)
C. Motor Vehicles Act, 1988 — Compensation — Fatal accident — Disbursement of awarded amount — Direction to disburse the restored amount with interest within two months — Amount to be equally apportioned among wife, children, and parents — Amount for minor children to be kept in fixed deposit with interest for the mother/guardian. (Para 5)
D. Precedent — Applicability — Decision in Ramachandrappa v. Royal Sundaram Alliance Insurance Co. Ltd., (2011) 13 SCC 236, regarding income of a coolie in 2004, applied to assess probable income of a driver in 2014. (Para 4)
E. Precedent — Applicability — Decision in New India Assurance Company v. Somwati and Ors., (2020) 9 SCC 644, regarding entitlement of children and parents to loss of consortium, applied. (Para 4)
JUDGMENT
K. Vinod Chandran, J. – Leave granted.
2. The appellants are the legal representatives of the deceased in a motor accident; the widow, three minor children and parents. The deceased was the driver of a truck in which a helper/cleaner was accompanying him. The driver had alighted after parking the truck and when he was boarding the truck, another truck driven rashly and negligently hit him and he died on the spot. The helper/cleaner who was PW2 before the Tribunal, admitted him to the hospital and gave a First Information Statement leading to the registration of an FIR. The claimants were before the Tribunal seeking compensation for the death of the bread winner of the family who was 28 years old when he met with the accident and succumbed. The Tribunal awarded a total amount of Rs. 23,07,000/- to the dependents adopting the salary claimed of Rs.10,000/- and reducing 1/3rd for personal expenses while taking 3/4th of 40% of the income of the deceased as future prospects. The wife was granted loss of consortium @ Rs. 40,000/-, the children @ Rs.25,000/- each and the parents @ Rs. 10,000/- each. The funeral expenses and loss of estate was also awarded @ Rs.15,000/- each.
3. The Insurance Company filed an appeal before the High Court in which there was considerable deduction made especially on the salary, which was reduced to Rs. 4,076/-adopting the minimum wages for a driver @ Rs. 5,434/- with 40% future prospects. The claimants were granted only Rs. 40,000/- towards loss of consortium. The amount awarded was reduced to Rs. 12,34,105/-.
4. We find no reason to accede to the reduction of income as done by the High Court. The accident occurred on 08.05.2014. In Ramachandrappa v. Royal Sundaram Alliance Insurance Co. Ltd., (2011) 13 SCC 236 this Court held that even a coolie would get an income of Rs.4,500/- in the year 2004. Hence, an unskilled labourer considering the marginal and incremental increase in each successive year @ Rs.500/- per year would be entitled to get almost Rs.10,000/- in the year 2014. Hence, the claim made before the Tribunal with respect to the driver of heavy vehicle getting Rs. 10,000/- as wages per month must be necessarily accepted. Insofar as the loss of consortium, it has been held in New India Assurance Company v. Somwati and Ors., (2020) 9 SCC 644 that even the children and the parents are entitled to compensation for loss of consortium.
5. Since no appeal is filed by the claimants from the award of the Tribunal, we do not think there is any enhancement required. Still the award made as compensation for loss of consortium to the children and the parents by the Tribunal has to be retained. On the above reasoning, we set aside the order of the High Court restoring the order of the Tribunal. The amounts, with interest, as awarded by the Tribunal shall be disbursed to the claimants within a period of two months, which shall be equally apportioned in the name of the wife, children and parents. If any of the minor children have not attained majority, the amount shall be kept in a fixed deposit, the interest of which can be disbursed to the mother who is the guardian. The insurance company shall deposit the amounts within the period stipulated before the Tribunal and the Tribunal shall apportion the amounts as directed hereinabove.
6. The appeal is allowed.
7. Pending applications, if any, shall stand disposed of.