Motor Accident Compensation: Multiplier Method Has To Be Applied For Future Prospects And Advancement In Life And Career: Supreme Court

The Supreme Court observed that, while computing motor accident compensation, multiplier method has to be applied for future prospects and advancement in life and career. In this case, Motor Accident Claims Tribunal assessed the amount of compensation at Rs.21,92,000/-. The High Court, allowing the appeal filed by insurance company reduced the compensation to Rs.3,40,000/-. Before the Apex Court in appeal, the claimant-appellant referred to judgments in Erudhaya Priya v. State Express Transport Corporation Ltd. in which it was observed that multiplier method was logically sound and legally well established to quantify the loss of income as a result of death or permanent disability suffered in an accident. The present case being one of permanent disability of 40 per cent, it has been urged that the same principle should be applied in the present case while in fact nothing has been granted on account of future prospects, the claimant contended.