High Court Modifies Compensation Awarded to Deceased’s Sole Legal Heir
The Kerala High Court ruled that a married sister of a deceased accident victim cannot claim compensation for “loss of dependency.” However, as his sole legal heir, she is entitled to compensation under “loss of estate” and “loss of love and affection.”
Background of the Case
A man died in a bike accident. The Motor Accident Claims Tribunal found that the accident happened due to the bike driver’s negligence. The tribunal awarded ₹9,50,000 in compensation to his sister under various categories.
The insurance company challenged the tribunal’s decision, arguing that the compensation amount was excessive. It also contended that a married sister is not entitled to “loss of dependency” compensation.
Court’s Observations
Justice Shoba Annamma Eapen reviewed the case and acknowledged that since the deceased’s parents were no more and he had no other siblings, the sister might have been dependent on him. However, there was no evidence to support this claim.
Referring to previous rulings, the Court stated that siblings can receive compensation under “loss of estate.”
Key Judgments by the High Court
No Compensation for Loss of Dependency: The sister did not provide proof of financial dependency. Therefore, she could not claim compensation under “loss of dependency.”
Compensation for Loss of Estate: The Court confirmed that she was eligible for compensation under this category. The amount was calculated using the same method as “loss of dependency.”
Compensation for Loss of Love and Affection: The sister was not entitled to “loss of consortium” but could claim “loss of love and affection.” The Court awarded an additional ₹40,000 under this category.
Deductions and Adjustments: In National Insurance Co. Ltd v. Pranay Sethi (2017), the Supreme Court ruled that a deceased bachelor’s personal expenses should be deducted at 50%. The Tribunal applied this rule correctly. Funeral expenses were capped at ₹15,000 per Supreme Court guidelines. The Tribunal had granted ₹25,000, but the Court did not interfere due to the minor difference.
Final Verdict
The High Court upheld most of the Tribunal’s compensation but added ₹40,000 for “loss of love and affection.” This amount will be paid with an 8% annual interest from the date of the petition until the full payment is made. The claimant is also entitled to proportionate legal costs.
This ruling reinforces that married siblings cannot claim “loss of dependency” but can receive compensation under “loss of estate” and “loss of love and affection” in accident cases.
