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SUPREME COURT OF INDIA
S. Abdul Nazeer, Vikram Nath, JJ.
Ushakumari & Ors. – Appellants
Versus
Reliance General Insurance Co. Limited – Respondent
Civil Appeal No(s). 3649 of 2022 (Arising Out of SLP (C) No. 5349 of 2019)
Decided On : 05-05-2022
Compensation - Motor Accidents Claims - MACA No. 2561 of 2014 - Section 134 of Motor Vehicles Act, 1988 - The court discussed the application of the multiplier of 13 for granting compensation and set aside the High Court's decision to divide the multiplier into two parts. The judgment restored the Tribunal's decision of awarding compensation by applying the multiplier of 13.
Fact of the Case:
The appeal challenged the order passed by the High Court of Kerala at Ernakulam, which held the appellants entitled to compensation of Rs.22,32,000/- with interest at the rate of 9% per annum from the date of petition till the date of actual payment.
Finding of the Court:
The court found that the High Court was not justified in reducing the compensation amount by dividing the multiplier of 13 into two parts and restored the Tribunal's decision of awarding compensation by applying the multiplier of 13.
Issues: Challenge to the order passed by the High Court, application of the multiplier for granting compensation.
Ratio Decidendi: The court held that the High Court was not justified in reducing the compensation amount by dividing the multiplier of 13 into two parts and restored the Tribunal's decision of awarding compensation by applying the multiplier of 13.
Final Decision: The judgment of the High Court was set aside, and that of the Tribunal was restored. The Insurance company was directed to deposit the compensation amount as awarded by the Tribunal within three months from the date of the judgment.
ORDER
1. Leave granted.
2. Challenge in this appeal is to the order passed by the High Court of Kerala at Ernakulam on 10th April, 2018 in MACA No. 2561 of 2014 holding that the respondents (appellants herein) were entitled to compensation of Rs.22,32,000/- (Rupees twenty two lakh thirty two thousand) with interest at the rate of 9% per annum from the date of petition till the date of actual payment.
3. Before the High Court the Insurance Company had questioned the judgment and Award passed by the Motor Accidents Claims Tribunal, Kollam (in short 'the Tribunal') on 28.06.2014 in OP(MV) No. 134 of 2012 whereby the Tribunal applied the multiplier of 13 and granted compensation of Rs.28,82,000/- with interest @ 9% p.a. from the date of filing of the petition till the date of realisation.
4. We have heard learned counsel for the parties and perused the record.
5. We are of the view that the High Court was not justified in reducing the compensation amount by dividing the multiplier of 13 into two parts i.e. upto the age of retirement, multiplier 8 and after the retirement for the lifetime, multiplier 5. In our considered opinion, the Tribunal was right in awarding compensation by applying the multiplier of 13.
6. Therefore, the judgment of the High Court is set aside and that of the Tribunal is restored.
7. The Insurance company is directed to deposit the compensation amount as awarded by the Tribunal within three months from today, before the Tribunal, after deducting the amount, if any, deposited earlier, to be released in favour of the claimants as apportioned by the Tribunal.
8. The appeal succeeds and is accordingly allowed. No orders as to cost.
The application of the multiplier for granting compensation under the Motor Vehicles Act, 1988.
The main legal point established in the judgment is the court's authority to award additional compensation when it deems the compensation awarded by lower courts to be inadequate.
The court clarified that claims under Section 166 of the Motor Vehicles Act require consideration of future prospects in compensation calculations, leading to an enhancement of the awarded amount.
Tribunal has committed no error in reckoning the age of deceased while determining which multiplier - Multiplier is to be fixed as per the age of deceased and not the claimants.
The main legal point established in the judgment is that a uniform multiplier should be applied in all cases for determining compensation, considering the age of the deceased as the relevant factor.
The assessment of compensation in motor accident cases should be based on sufficient reasons and evidence, and any modification should be justified.
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