Lawstreet Journal

Supreme Court On Accident Compensation: Multiplier Effect To Include Future Prospects [READ JUDGMENT]

Lawstreet Journal 29 Jul 2020 8:05pm

Image courtesy: Lawstreet Journal Judiciary Supreme Court On Accident Compensation: Multiplier Effect To Include Future Prospects [READ JUDGMENT]

The apex court recently said that the future of the victim involved in the accident, based on their likely advancement in life and career, must be a driving factor in applying the multiplier method in deciding the compensation in a motor accident.

A three-judge bench of the Supreme Court, consisting of Justice Sanjay Kishan Kaul, Justice Ajay Rastogi, and Justice Aniruddha Bose noted the aforementioned, after allowing an appeal and judging the appellant to be qualified for compensation that included simple interest from the date of application till the date of payment.

The appellant, E. Priya, was afflicted by a disability of 31.1 percent of the whole body in 2011. That year she underwent an accident with a lorry during her travel. She then took the matter before the Motor Accident Claims Tribunal, Madurai, citing Section 166 of the Motor Vehicles Act, 1988. 

Taking into consideration the nature of the disability, the Tribunal used the multiplier method to compute the loss of earning power and made the State Corporation liable to pay Rs 35,24,288 interest at 7.5 percent per annum from the date of petition till the date of full payment. 

The State Corporation appealed to the High Court in opposition to the order which was partly allowed and the court decreased it to an amount of Rs 25,00,000. The compensation was reduced on the ground that the calculation method was incorrect, due to the fact that the question of how the injuries that were suffered by the appellant would have affected her earning… Continue Reading...


Tagged: accident   Motor Accident Claims Tribunal  
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