Back
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
R.SUBRAMANIAN, N.SATHISH KUMAR, JJ.
The Branch Manager, The National Insurance Company Ltd. – Appellant
Versus
Abdul Samad – Respondent
C.M.A(MD)No.227 of 2022 and C.M.P(MD)No.2001 of 2022
Decided on : 14-03-2022
Motor Vehicles Act - Application of Split Multiplier - Supreme Court's Decision on Multiplier in Determining Compensation
Fact of the Case:
The appellant filed an appeal against the fair and decreetal order made in a motor accident claims case, arguing that the Tribunal should have applied a split multiplier due to the deceased's age at the time of the accident.
Finding of the Court:
The court dismissed the appeal, citing the Supreme Court's decision in R.Valli & Others v. Tamil Nadu State Transport Corporation Ltd., which held that the multiplier suggested in the judgment of National Insurance Company Limited v. Pranay Sethi & Others cannot be changed under any circumstances.
Issues: The main issue was the application of the multiplier in determining the compensation for the deceased's age at the time of the accident.
Ratio Decidendi: The court relied on the Supreme Court's decision, which affirmed the suitable multiplier for the deceased's age, and concluded that the appellant's argument was covered by the decision against the appellant/Insurance Company.
Final Decision: The Civil Miscellaneous Appeal was dismissed, and the appellant/Insurance Company was directed to deposit the entire award amount with accrued interest and cost to the Credit of M.C.O.P.No.110 of 2016 within a specified period.
JUDGMENT :
PRAYER: Appeal filed under Section 173 of the Motor Vehicles Act, against the fair and decreetal order dated 16.09.2019 made in M.C.O.P.No.110 of 2016 on the file of the Motor Accident Claims Tribunal(Principal District Judge/Additional District Judge (Addl. Charge) Ramanathapuram.
The only ground on which the appellant seeks to challenge the award is that the Tribunal ought to have applied split multiplier since the deceased is aged about 55 years at the time of accident.
2. Though Mr.S.Srinivasa Raghavan, learned counsel appearing for the appellant/Insurance Company, would vehemently contend that split multiplier should have been applied in this case, unfortunatey for him, the Honourable Supreme Court of India in R.Valli & Others v. Tamil Nadu State Transport Corporation Ltd., reported in 2022 SAR(Civ) 263, had held that the multiplier suggested by the Supreme Court in National Insurance Company Limited v. Pranay Sethi & Others reported in 2018 SAR (Civ) 81, cannot be changed under any circumstances. In coming to the said conclusion, the Honourable Supreme Court has observed as follows:
“11. Thus, we find that the method of determination of compensation applying two multipliers is clearly erroneous and run counter to the judgment of this Court in Pranay Sethi, affirming the judgment in Sarla Verma. Since the deceased was 54 years of age on the date of incident, therefore, the suitable multiplier would be 11 as per the judgment of this Court in Sarla Verma approved by this Court in Pranay Sethi.”
3. Therefore, the sole ground that urged by the appellant/Insurance Company, is covered by the decision of the Honourable Supreme Court of India against the appellant/Insurance Company.
4. Therefore, this Civil Miscellaneous Appeal fails and is accordingly dimissed. No Costs. Consequently, connected Miscellaneous Petition is closed.
5. The appellant/Insurance Company is directed to depoist the entire award amount with accrued interest and cost, to the Credit of M.C.O.P.No.110 of 2016, on the file of the Motor Accidnet Claims Tribunal (Principal District Judge/Additional District Judge(Addl. Charge), Ramanathapuram, within a period of eight weeks from the date of receipt of copy of this judgment.
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 court established that the application of a uniform multiplier based on the deceased's age is essential in compensation claims, and the split multiplier approach is only valid when justified by s....
The central legal point established in the judgment is the determination of compensation under the Motor Vehicles Act, specifically the applicability of the split multiplier method and the reliance o....
The court reaffirmed that split multipliers for compensation calculations are impermissible unless exceptional reasons are recorded, thus enhancing the total compensation based on the standard multip....
Accident claim - loss of dependency – Entitlement of enhanced compensation amount
The application of the multiplier method for calculating compensation and the reasonableness of the compensation amount awarded by the Tribunal.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
