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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
ASHUTOSH KUMAR, J.
Munni Devi Sharma wife of Ram Avtar Sharma - Appellant
Versus
Suresh Kumar Son of Mangu Ram - Respondent
S.B. Civil Miscellaneous Appeal No. 538 of 2013
Decided On : 06-01-2026
ORDER :
ASHUTOSH KUMAR, J.
"10. …We are in agreement with the High Court that the determination must proceed on the basis of the income tax return, where available. The income tax return is a statutory document on which reliance may be placed to determine the annual income of the deceased.”
"9. The Tribunal, by recording a finding that the deceased was in the age group of 40 to 50 years, applied the multiplier of 13 while calculating the compensation. The High Court, curiously while maintaining the multiplier of 13 as per the judgment of this Court in compensation only on the ground that the deceased was aged 50 years 3 months on the date of the accident, as such the compensation is to be calculated on account of loss of dependency by granting future prospects at 15% but not 30%. So far as the application of multiplier of 13 by the Tribunal is concerned, the High Court has not interfered with the same. When the age of the deceased was considered in the group of 40 to 50 years, we are of the view that the High Court has committed error in granting only 15% towards future prospects instead of 30%. As per the judgments of this Court, primarily the age group is to be considered. Considering the age group as 40 to 50 years, when the multiplier of 13 is maintained by the High Court, there is no reason or justification for reducing the compensation by granting 15% towards future prospects. Though the learned counsel appearing for Respondent 1 Insurance Company has submitted that the compensation towards future prospects was awarded as per the Constitution Bench judgment of this Court in National Insurance Co. Ltd. v. Pranay Sethi3 but at the same time it is to be noticed that in the very same judgment in para 59.3, while considering the grant of future prospects, this Court has specifically said that the addition should be 30% if the age of the deceased was in the age group of 40 to 50 years. For application of multiplier, the High Court has also accepted the age group of the deceased between 40 and 50 years. In that view of the matter, there is no reason for reducing the compensation by granting future prospects at 15% only."
The appropriate multiplier for calculating compensation must consider the age of the deceased, and 10% future prospects should be included in the compensation amount.
Choice of multiplier – It is age of deceased which ought to be taken into consideration and not age of dependants for arriving at the multiplier.
The appropriate multiplier for compensation in motor accident claims should be based on the deceased's age, with additional allowances for future prospects and non-pecuniary damages.
Fatal accident – Age of deceased is the basis for applying suitable multiplier and compensation is to be determined keeping in view future prospects.
Determination of compensation in fatal accident claims must consider future income prospects and the appropriate multiplier based on the deceased's age, rather than that of family members.
The central legal point established in the judgment is the proper assessment of compensation under the Motor Vehicles Act, including the deceased's income, future prospects, and suitable multipliers,....
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