In motor vehicle accident claims, Loss of Consortium is a key concept for compensating the family of a deceased victim. It is a comprehensive term that encompasses the loss to a spouse, to the children and the parents.
The Settled Legal Position
The law was clarified by a three-judge bench of the Supreme Court in The New India Assurance Company v. Somwati (2020). Relying on the principles established by a two-judge bench in Magma General Insurance Company Limited v. Nanu Ram & others [(2018) 18 SCC 130], the Court recognized three distinct categories of consortium: spousal, parental, and filial.
Therefore in appropriate cases, compensation can be granted for parental and filial consortium in addition to spousal consortium.
Defining the Three Types of Consortium
Consortium refers to the loss of the deceased’s company, care, comfort, guidance, and affection. The three types are defined as follows:
Spousal Consortium: This is the right of the surviving spouse to compensation for the loss of the deceased’s “company, society, cooperation, affection, and aid” in every aspect of the marital relationship, including conjugal relations.
Parental Consortium: This is awarded to a child for the premature death of a parent, compensating for the loss of “parental aid, protection, affection, society, discipline, guidance, and training.”
Filial Consortium: This is the right of parents to be compensated for the death of a child, acknowledging the loss of the “love, affection, care, and companionship of the deceased child” and their role in the family unit.
Compensation Amount for Loss of Consortium
The amount of compensation awarded for consortium is governed by the principles laid down by the Constitution Bench in National Insurance Co. Ltd. v. Pranay Sethi [AIR 2017 SC 5157].
The Court fixed the amount at ₹40,000 for each head of consortium, with a mandatory 10% increase every three years since the date of that judgment, October 31, 2017.
The Settled Position on Loss of Consortium
Therefore, the settled position is that the loss of consortium includes spousal, parental and filial consortium, even though some judgements in the past allowed compensation for spousal consortium alone.
