Himachal High Court upholds compensation for married daughters under ‘Loss of Consortium’ in bus accident case.

The Himachal Pradesh High Court has held that under the Motor Vehicles Act, compensation for loss of income is limited to financially dependent legal heirs, however, married daughters, though not financially dependent on their deceased father, are still entitled to compensation under the head of “loss of consortium”.

Justice Vivek Singh Thakur, deciding FAO No 4165 of 2013 (Oriental Insurance Company Ltd versus Satya Devi & Others), ruled that “dependent legal heirs, apart from compensation under other heads, shall also be entitled for loss of consortium, whereas other family members who are not dependent legal heirs of the deceased shall be entitled for loss of consortium, which is awarded for personal loss of love, affection, guidance and emotional trauma”.

The case pertained to the death of Surat Ram, who died in a bus accident on July 10, 2009. He was returning home from work in a crowded bus insured by Oriental Insurance. While standing near the door, he fell out when the driver applied sudden brakes, and the rear tyre crushed his leg. He later succumbed to injuries at IGMC, Shimla. His colleague, who was present at the scene, blamed rash driving in a police statement.

The Motor Accident Claims Tribunal awarded Rs 15.8 lakh compensation to the family. The Insurance Company challenged the decision, citing lack of independent eyewitnesses and arguing contributory negligence by the deceased. It also contested the age used for calculating compensation and the grant of consortium to all claimants.

The High Court upheld the Tribunal’s finding of rash and negligent driving, relying on the colleague’s testimony, which was consistent and supported by the FIR (first information report) and police investigation. The Court rejected the argument of contributory negligence, noting it was not raised earlier.

However, the Court corrected the deceased’s age to 55 (instead of 50) and recalculated the multiplier to 11. It held only the wife and son were financially dependent and awarded them Rs. 13,28,220 along with Rs 40,000 each under loss of consortium. The four married daughters were awarded Rs 40,000 each solely under loss of consortium.

Team Maverick