Summary
A 25-year-old pregnant housewife, who also gave tuition, was killed in a road accident. The Punjab and Haryana High Court assessed her notional income at Rs 6,000 a month, added nothing for future prospects, and awarded Rs 50,000 for the loss of the foetus. On the claimants' appeal, the Supreme Court enhanced the award. Given her contribution to the family and her tuition work, her income should have been taken at no less than Rs 7,500 a month, with 40% added for future prospects, a point the insurer fairly conceded. The award for the foetus was raised to Rs 1 lakh, and the husband and minor son were each awarded Rs 40,000 for loss of consortium or love and affection. The total compensation was fixed at Rs 32,82,000 with 7.5% interest.
Issues
- Whether the compensation for the death of a 25-year-old housewife required enhancement as to notional income, future prospects, loss of the foetus and loss of consortium.
Provisions considered
- Compensation for death (just compensation), Motor Vehicles Act, 1988Loss of dependency was recomputed on notional monthly income of Rs 7,500 with 40% added for future prospects, and the conventional heads were enhanced. (¶¶ 5, 5.1, 5.2, 6)
Held
- Considering that the deceased was a 25-year-old housewife who contributed to the family and did tuition work, her income ought to have been taken at least at Rs 7,500 per month, and 40% had to be added towards future prospects in computing loss of dependency. (¶ 5)
- The claimants are entitled to Rs 1 lakh for loss of the foetus instead of Rs 50,000, and the husband and minor son to Rs 40,000 each for loss of consortium or love and affection. (¶¶ 5.1, 5.2)
Result
Appeal allowed; the High Court's award modified and the claimants held entitled to a total of Rs 32,82,000 with interest at 7.5% per annum; no order as to costs.