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SC says compensation can be given to children and parents too in motor accident claims

New Delhi: The Supreme Court of India has held that the consortium in a Motor Accident Claim can be awarded to the children and parents also.

A divisional bench of Justice Ashok Bhushan and Justice R. Subhash Reddy set aside the award of compensation under the conventional head ‘loss of love and affection’.

The petitions have been filed by insurance companies including, New India Insurance Company Ltd., Cholamandalam MS General Insurance Company Ltd., and The Oriental Insurance Company Ltd. challenging the High Court judgment on compensation awarded on the Motor accident claim by Motor Accident Claim Tribunal.

The High Court bench allowed the award based on two points:

·         “Loss of Consortium”

·         “Loss of love and affection”

However, the SC bench directed that the Motor Accident Claims Tribunals shall recompute the amount payable and take further steps in accordance with the law.

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Whereas the bench accepted the submissions of the counsel appearing for the appellant that there is no justification for the award of compensation under separate head ‘loss of love and affection’. The bench further noted that “The appeal filed by the appellant deserves to be allowed insofar as the award of compensation under the head ‘loss of love and affection’.”

Read the judgment here;

30766-2019-34-1501-23792-Judgement-07-Sep-2020

-India Legal Bureau

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