Loss of Consortium: High Court Awards Enhanced Compensation with Interest in Rash Driving Case

In a significant judgment High Court of Karnataka, presided over by The Hon’ble Mr. Justice M.I. Arun, enhanced compensation in a case involving a fatal accident caused by rash and negligent driving. The court recognized the concept of “loss of consortium” and awarded an increased compensation along with interest.

The case, filed under Section 173(1) of the Motor Vehicles Act, pertained to an accident that occurred on October 14, 2018. In this tragic incident, a young man named Chetan lost his life while riding as a pillion on a motorcycle. The court’s judgment came in response to an appeal filed by the deceased’s parents seeking higher compensation.

The court, while delivering the judgment, made several key observations on legal points. The Hon’ble Justice M.I. Arun noted the importance of the “loss of dependency” concept and emphasized the application of a multiplier in determining compensation. The court stated, “Loss of dependency is a significant component in compensation claims, and it should be calculated diligently.”

Furthermore, the court recognized the concept of “loss of consortium” and awarded each petitioner a sum of Rs. 40,000 towards this aspect. The judgment quoted, “In legal parlance, ‘consortium’ is the right of the spouse to the company, care, help, comfort, guidance, society, solace, affection, and sexual relations with his or her mate. That non-pecuniary head of damages has not been properly understood by our courts.”

The court also upheld the compensation awarded for medical expenses, transportation of the deceased’s body, funeral expenses, and loss of estate. It found no reason to disagree with the Tribunal’s decision in these matters.

In a significant move, the court ordered an interest rate of 6% per annum on the enhanced compensation from the date of the petition before the Tribunal until realization. This decision aligns with the court’s commitment to ensuring justice for the victims and their families.

The judgment concluded with a clear directive to the insurance company. The court ordered the insurance company to pay the enhanced compensation within a six-week timeframe, providing relief to the grieving parents.

Date of Decision: 14th December, 2023

LAKSHMAMMA VS RANGASWAMY