Motor Accident Compensation- Multiplier Which Is Relevant To The Deceased Has To Be Applied: Supreme Court

The Supreme Court observed that, while computing Motor Accident Compensation, the multiplier which is relevant to the deceased has to be applied.

Following the death of one J. Jeyachandran in an accident, his parents filed a compensation claim. MACT, took the multiplier at 16 since the deceased was aged 33 at the time of accident, and arrived at a sum of Rs.30,81,577/-. The reasoning of the MACT was that the deceased was employed in a job in Saudi Arabia where he was earning 3,500 Riyals.

The Madras High Court while allowing the appeal filed by the insurer, found that it may not be safe to arrive at the income of the deceased on the basis of the monthly salary of 3,500 Riyals. Instead, the Court substituted the income of the deceased with the sum of Rs.15,000/- per month.  It also took the view that the multiplier should be on the basis of age of the parents of the deceased, (being 65 and 61, the average age was taken, which was fixed as 63 years.) On the said basis, the multiplier was reduced from 16 to 7.  

In appeal, the Apex Court bench of Justices KM Joseph and PS Narasimha observed that the claimants should be granted increase by 40 per cent having regard to the admitted age of the deceased being below 40 years on the basis of the salary which we have arrived upon based on the order of the appointment. The court noticed that the deceased was aged 33 years and was a graduate qualified in a course in computer.

Applying 40 per cent increase to the basic salary, the income was fixed at Rs.21,000/- per month. The court awarded compensation of 20 Lakhs.

There is hardly any dispute that it is the multiplier which is relevant to the deceased, which shall apply, the bench observed.

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