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The New India Assurance Company Limited v. Somwati (and connected appeals)

Civil Appeal · 2020 INSC 535Decided 7 Sept 2020
Civil Appeal No. 3093 of 2020
Justice Ashok Bhushan · Justice R. Subhash Reddy

Background

Several insurance companies (New India Assurance, Cholamandalam MS General Insurance, and Oriental Insurance) jointly appealed a set of High Court orders arising from separate motor-accident death claims. In each case, the High Courts had awarded compensation not only for "loss of consortium" to the surviving spouse, children and parents, but also a separate amount for "loss of love and affection" to the same family members.

Decision Breakdown

The Supreme Court traced the law on conventional heads of compensation from the Constitution Bench ruling in Pranay Sethi through later decisions recognising that "consortium" itself covers spousal, parental and filial relationships (not just a spouse's claim). It held that "loss of love and affection" is not an independent, separately compensable head at all: it is already comprehended within "loss of consortium." The consortium awards to the various family members were upheld as lawful, but the additional, separate awards for "loss of love and affection" were set aside, and the Tribunals were directed to recompute the amounts accordingly. The appeals were thus partly allowed.

Lesson Learnt

In motor-accident death claims, compensation under the law's recognised conventional heads is limited to loss of estate, loss of consortium (which already covers love, affection, and companionship for spouse, children and parents) and funeral expenses: families cannot claim "loss of love and affection" as a separate, additional head on top of consortium.

Official source (sci.gov.in)View Judgment (PDF)

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