[Motor Accident Claims] Compensation For Deceased Working Abroad Should Be Calculated At Exchange Rate Prevailing On Date Of Filing Petition: Kerala HC

The High Court was considering an appeal against the Tribunal's order awarding compensation of rupees Two crore ninety two lakh nineteen thousand to the legal heirs of the deceased, who was working as a nurse in Australia.

Justice Johnson John relying upon the Apex Court decision in Shyam Prasad Nagalla v Andhra Pradesh State Board Transport Corporation (2025) in which it was held that compensation should be calculated based on the exchange rate which was prevalent on the date of the filing of the claim petition.

Court said, “The Tribunal calculated the exchange rate of Australian dollar as on the date of occurrence. But, the decision of the Honourable Supreme Court in Shyam Prasad Nagalla v. Andhra Pradesh State Board Transport Corporation [2025 KHC Online 7117] shows that compensation should be calculated at the exchange rate prevailing on the date of filing of the petition. The learned counsel for the appellants/claim petitioners filed an affidavit stating that the value of Australian dollar as on the date of filing of the petition ie., on 19.10.2013 was Rs.59.23 and the same is not disputed by the other side.”

The 34 year old deceased, who was employed as a nurse in Australia was riding a motorcycle with her father when they met with an accident due to the rash and negligent driving of a lorry, resulting in their deaths.

Two appeals were filed, one filed by the insurance company and the other by the legal heirs (mother, husband, two minor kids) of the deceased, and both appeals were filed challenging the quantum of compensation ordered by the Tribunal.

The Insurance Company submitted that the Tribunal wrongly calculated her monthly income.

The High Court observed that the Tribunal calculated the monthly salary based on the exchange rate of Australian dollar as on the date of occurrence. It stated that exchange prevailing on the date of filing the petition should be used for calculation.

The Court further observed that the Tribunal should have used multiplier as 16 which is applicable for persons between the age of 31-56 years, instead of using the multiplier of 10.

Court noted, “ It is well settled that the multiplier is to be selected on the basis of the age of the deceased at the time of the accident and therefore, I find that the Tribunal is not justified in not following the principles laid down by the Honourable Supreme Court in Sarla Varma v. Delhi Transport Corporation (2010) for selecting the multiplier and that the correct multiplier applicable is 16.”

Accordingly, the dismissed the appeal of the Insurance Company and allowed the appeal filed by the claimants. The Court thus granted an enhanced compensation of rupees Seventy Three Lakhs Sixty Six Thousand Four Hundred and Eight to the claimants.

Counsel for Insurance Company: Senior Advocate George Cherian, Advocates K S Santhi, Latha Susan Cherian

Counsel for Claimants: Advocate A N Santhosh

Case Title: National Insurance Co.Ltd. v John Thomas & Connected Matter

Case No: MACA NO. 1287 OF 2019 & Connected Matter

Citation: 2025 LiveLaw (Ker) 208

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