MV Accident Compensation- Multiplier to be based on Age of Deceased- Karnataka HC


June 10, 2019

Case Name: The Oriental Insurance Company Limited Satyavathi v. Rathna & ors.

In the present case, the deceased had died in a road traffic accident due to rash and negligent driving of the tipper lorry. Hence, the parents of the deceased filed the claim petition before the Tribunal. Accordingly, the Tribunal granted compensation of Rs.6,96,000/- to the claimant. Being aggrieved by this, the Insurance Company filed the present appeal on the ground that the Tribunal while deciding compensation erred in taking the multiplier based on the age of the deceased instead of based on the age of the deceased’s mother.

Bench’s Verdict

The High Court of Karnataka in view of the facts and law pertaining to motor vehicle accident compensation held that the Insurance Company’s plea was unjustified. While arriving at it’s verdict, the High Court made reference to Supreme Court’s landmark verdict in the case of National Insurance Co. Ltd. -V- Pranay Sethi And Others [AIR 2017 SC 5157], wherein the Apex Court had held that if deceased was aged below 40 years and had a permanent job, an addition of 50% of the established income has to be made towards loss of future prospects. Further, it was also held that multiplier has to be applied based on the age of the deceased and not based on the age of the mother of the deceased.

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