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R. SUBHASH REDDY, HRISHIKESH ROY
Sumathi – Appellant
Versus
National Insurance Company Ltd. – Respondent
| Table of Content |
|---|
| 1. background of the case and parties involved. (Para 2 , 3) |
| 2. initial compensation awarded by the tribunal. (Para 4) |
| 3. dispute over compensation assessment and arguments raised. (Para 5 , 7) |
| 4. analysis of split multiplier and its application. (Para 8 , 9 , 10) |
| 5. final decision in favor of the appellants. (Para 11 , 12) |
ORDER :
2. This civil appeal is filed by legal heirs of the deceased-Late Balasubramanian, aggrieved by the judgment dated 8th November, 2017 passed by the Madurai Bench of Madras High Court in CMA (MD) No. 1135 of 2015. By the aforesaid judgment, the High Court has allowed the Misc. Appeal filed by the Insurance Company under Section 173 of the MOTOR VEHICLES ACT , 1988, reducing the compensation from Rs. 40,16,496/- to Rs. 25,25,000/-.
4. The Motor Accident Claims Tribunal has held that the accident occurred due to negligent driving of driver of the van. As the deceased was Govt. Servant and had died at the age of 54 years, while drawing a salary of Rs. 45,643/- per month (as per the salary certificate at Annexure “C-6”) after deducting one-third amount towards personal expenses and by applying multiplier of 11, awarded compensation of Rs. 40,16,496
Death in motor accident – In normal course, compensation is to be calculated by applying multiplier and not split multiplier – Any deviation from same warrants special reasons to be recorded.
Without assigning any reasons, compensation towards "loss of dependency" cannot be determined by splitting multiplier.
Accident claim - loss of dependency – Entitlement of enhanced compensation amount
The Supreme Court's decision on the application of the multiplier in determining compensation is binding and cannot be changed under any circumstances.
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 appropriate multiplier for compensation in accidental death cases should be based solely on the deceased's completed age, as established in the Sarla Verma case.
The main legal point established in the judgment is the requirement for specific reasons and evidence to apply the split multiplier method and the consideration of potential future employment and ear....
Multiplier has to be determined o the basis of age of the deceased and not his mother.
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