Enhanced Compensation in Motor Accident Claims: Supreme Court’s Decision

The Supreme Court of India, in the case of Bhogireddi Varalakshmi & Ors. v. Mani Muthupandi & Ors., addressed the issue of inadequate compensation granted by the Motor Accident Claims Tribunal and the High Court. The appellants sought a review of the awarded amount, arguing that the calculation methods used were inconsistent with established legal precedents.

Case Background

The petitioners had approached the Supreme Court challenging the decision of the lower courts regarding compensation in a motor accident claim. The tribunal, in its 2008 judgment, had granted compensation with a multiplier of “6.31” and nominal amounts for loss of consortium and funeral expenses. The High Court, upon appeal, revised the multiplier to “8” and increased the compensation for loss of consortium.

Supreme Court’s Observations

The Supreme Court, through a bench comprising Kurian Joseph and Amitava Roy, expressed dissatisfaction with the High Court’s approach. The Court referenced its precedents in Sarla Verma v. Delhi Transport Corporation and Rajesh v. Rajbir Singh, which had laid down clear principles for calculating multipliers and future prospects. The Court remarked:

“It is shocking and disturbing that the learned Judge declined to follow the principles laid down by this Court in unmistakable terms in Sarla Verma (supra) as far as the multiplier is concerned. We do not want to say anything more. Therefore, in this case, the multiplier is taken as ’11’.”

The Court also emphasized that consortium extends beyond financial dependency, encompassing emotional and social aspects. Citing Rajesh v. Rajbir Singh, the Court held that a widow is entitled to a consortium award of Rs. 1,00,000, and minor children should receive Rs. 1,00,000 for loss of love, care, and guidance.

Final Judgment

Following the ruling in National Insurance Company Limited v. Pranay Sethi, the Court granted an additional 15% enhancement in future prospects, bringing the compensation calculation in line with the latest judicial interpretation.

“In addition to what has already been ordered in the order extracted above, the claimants shall be entitled to further enhancement of 15% on future prospects.”

With this ruling, the Supreme Court reaffirmed the need for consistency in compensation calculations, ensuring that claimants receive fair and just recompense.

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Download Judgment: Bhogireddi Varalaksh vs Mani Muthupandi & Or Supreme Court of India Judgment Dated 05-12-2017.pdf