Motor Accident Claims - Age Of Deceased And Not Of Dependents In Case Of Death Of A Bachelor Is Basis For Multiplier: Supreme Court

The Supreme Court held that the age of the deceased and not the age of the dependents in case of the death of a bachelor is to be the basis for multiplier. The order was passed by a bench comprising Justice Ravindra Bhat and Justice Sudhanshu Dhulia. 

The issue at hand concerned a High Court judgement which had reduced the compensation payable to the appellant(s)–claimants whose son had suffered fatal injuries and passed away on account of a motorcycle accident. In the first instance, the tribunal had arrived at the figure of Rs. 3,683/- per month, on the basis of which, compensation was directed, after holding that the appropriate multiplier was 18. However, against this order of the tribunal, the Insurer had approached the High Court, which in its impugned Judgment, reduced the multiplier to 9 having regarding the age of the surviving mother, who was the deceased's dependent.

It was against this judgement, the appellant-claimants approached the Supreme Court. It was urged that the High Court had overlooked the five-Judge Bench decision of this Court in National Insurance Company Ltd. Vs. Pranay Sethi & Ors., in terms of which, the claimants were also entitled to enhanced future prospects while calculating the quantum of compensation.

Here, the court found that it was the age of the deceased and not such of the dependents in case of the death of a bachelor which was to be the basis for the multiplier. The court also opined that the High Court had fell into an error in denying enhancement of compensation on account of future prospects. The order noted–

"Since the appellant was working in the informal sector, the appropriate standard would be 40% of the compensation determined. Consequently, it is hereby directed that the additional compensation on account of future prospects would be worked at 40% of the basic amount i.e. ₹ 4,107/- per month. In view of the forgoing discussion, the impugned order passed by the High Court is set aside. The order of the Tribunal is hereby restored as far as the multiplier is concerned; it shall be 18. So far as the question of additional quantum on account of future prospects is concerned, the appellant shall be entitled to 40% on that score, on the basic amount of ₹ 4,107/- per month. The other directions of payment of interest etc. are left undisturbed and in accordance with the order of the Tribunal."

Case Title : Giasi Ram and another versus ICICI Lombard General Insurance Co and others

Citation : 2022 LiveLaw (SC) 828

Motor Vehicles Act 1988 - Motor accident compensation - the age of the deceased and not the age of the dependents in case of the death of a bachelor is to be the basis for multiplier

Click Here To Read Order