Addition of Future Prospects to the Accident Claim Compensation is mandatory
On 9.6.2011, the tanker lorry insured with the respondent hit two-wheeler driven by the deceased, aged 37 years.
The appellants – claimants filed claim petition for Rs.20 lakhs on the basis of monthly income of Rs.10,000/-.
The Tribunal granted compensation of Rs.8,64,000/- on monthly income of Rs.6,000/- minus Rs.1,500/- monthly notional contribution to the family.
In appeal of the claimants, the High Court reckoned the monthly income of the victim at Rs.7,000/- and enhanced compensation to Rs.10.51 lakhs. However, the future prospects compensation was denied.
HELD, on consideration of the salary certificate showing that the victim was employed as driver on fixed monthly salary of Rs.10,000/-, corroborated by the affidavit of employer and which was not impeached by the insured, it is not permissible to assess the income at a lower figure. The Supreme Court, therefore, accepted the monthly income of Rs.10,000/-.
The head of “future prospects” itself is a creation of judicial interpretation, evolved to respond to socio economic realities and the legitimate expectations of dependents. If the law is capable of recognising anticipated economic progression as a valid loss, it is not too clear why emotional deprivation manifested in loss of love and affection must be viewed as an impermissible head, especially when Chapter XII of the Act is a beneficial piece of legislation meant to help people in distress arising out of road accidents.
The SC enhanced the compensation to Rs.20.80 lakhs.
In the present case, the victim was 37 years of age at the time of the accident and was earning a fixed monthly income. Once these foundational facts are established, the addition towards future prospects follows as a necessary consequence. The High Court, in declining such addition, failed to apply the binding precedent of this Court, thereby committing a manifest error of law.
“Consortium” and “loss of love and affection” distinction may be one of form rather than substance.
Consortium is a compendious concept encompassing spousal, parental and filial consortium. Loss of love and affection is subsumed within the loss of consortium. The non-pecuniary loss arising from deprivation of loss and affection is comprehended within the broader head of “consortium”. Consequently no separate award for loss of love and affection is warranted, since such emotional losses are legally subsumed in the broader category of “consortium”.
Judgment dated 6.2.2026 of the Supreme Court in SLP [C] No. of 23880 of 2022 of V. Pathmavati and others Vs. Bharthi Axa General Insurance Co. Ltd and another.
