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Motor Accident Compensation LawSupreme Court of India

Joginder Singh & Anr. v. ICICI Lombard General Insurance Company

Civil Appeal · 2019 INSC 904Decided 14 Aug 2019
Civil Appeal No. 6291 of 2019
Justice Indu Malhotra · Justice Sanjiv Khanna

Background

The appellants' 20-year-old daughter, an air-hostess trainee, was killed when the car she was travelling in was hit by a rashly driven vehicle insured with the respondent company. The Motor Accident Claims Tribunal awarded her parents Rs. 10,40,000 in compensation, applying a multiplier of 11 based on the age of the deceased's mother rather than the deceased herself, and without granting amounts for future prospects, loss of estate, or adequate loss of consortium. The Himachal Pradesh High Court upheld this award, so the parents appealed to the Supreme Court seeking enhancement.

Decision Breakdown

The Supreme Court held that settled law (including a three-judge bench ruling and the Constitution Bench decision in Pranay Sethi) required the compensation multiplier to be based on the age of the deceased, not the parents, so for a 20-year-old, the correct multiplier was 18, not 11. The Court also held the lower courts erred in not awarding 40% of income towards "future prospects" (as mandated for a young unmarried person under Pranay Sethi), not awarding Rs. 15,000 for loss of estate, and under-awarding loss of consortium (which should be Rs. 40,000 to each parent per the Nanu Ram precedent, rather than the lower Rs. 25,000 given). Recalculating with these corrections, the Court enhanced the total compensation by Rs. 13,48,000, to be paid within one month with 7.5% interest from the date of filing the claim.

Lesson Learnt

In motor accident death claims, the compensation multiplier is tied to the age of the deceased (not surviving dependents), and courts must also factor in future income prospects, loss of estate, and proper consortium amounts for parents: claimants should check an award against these settled Supreme Court formulas before accepting it as final.

Joginder Singh & Anr. v. ICICI Lombard General Insurance Company – Legal Case Shots | LegalAware