High Court Revises Compensation to Account for Future Prospects and Consortium for Deceased Students' Families
In a significant ruling, the Calcutta High Court has enhanced the compensation awarded to the families of two students, Sourav Sen Majumder and Souvik Sen Majumder, who tragically lost their lives in a motor accident. The original compensation, determined by the Learned Trial Court, was deemed inadequate by the High Court, which revised the amount to reflect the future earning prospects and consortium for the bereaved families.
The appeals, FMAT (MV) 38 of 2023 and FMA 188 of 2024, were filed by the claimants, Sanchita Sen Majumdar and Ashok Sen Majumdar, against the Oriental Insurance Co. Ltd. The appellants contended that the initial compensation did not adequately consider the future prospects of the victims, who were both students with promising futures. The High Court concurred with this view, noting that notional income should take into account future earning potential, even for students.
The court observed that the notional monthly income should not be limited to the victims' income during their student life. Instead, it should reflect their potential future earnings. Consequently, the High Court revised the monthly income estimation and applied a higher multiplier to calculate the compensation.
In the case of Sourav Sen Majumder, the compensation was increased to Rs. 13,00,000, with an additional Rs. 50,000 granted to account for loss of estate, funeral expenses, and filial consortium. Similarly, for Souvik Sen Majumder, the court revised the compensation to Rs. 13,00,000, enhancing the previous award by taking into consideration the future prospects and consortium.
The judgment underscores the importance of considering future earning potential when determining compensation for students in fatal accident cases. The court also directed that the additional compensation amounts, along with interest at 6% per annum from the date of filing the claim, be paid by the respondent, Oriental Insurance Co. Ltd., to the appellants.
The compensation is to be deposited before the Registrar General of the High Court Calcutta within eight weeks, and the appellants are entitled to withdraw the amount upon compliance with necessary formalities.
This ruling sets a precedent in how courts assess compensation in motor accident claims involving students, emphasizing the need to factor in potential future earnings and consortium in such tragic circumstances.
Bottom Line:
Motor Vehicles Act, 1988 - Compensation awarded for fatal motor accident - Enhancement of compensation on account of future prospects and consortium.
Statutory provision(s): Motor Vehicles Act, 1988 Section 166
Sanchita Sen Majumdar v. Oriental Insurance Co. Ltd., (Calcutta) : Law Finder Doc id # 2865308
