"Kerala High Court Extends Multiplier Method to Serious Injuries in Motor Accident Claims: Achieving Uniformity and Fair Compensation. Verdict in The Oriental Insurance Company Ltd v Abdul Khader."
The Kerala High Court has recently ruled that the multiplier method for calculating compensation in motor accident claims is not limited to cases of death but also applies to serious injuries. Justice C Jayachandran emphasized that the purpose of adopting the multiplier method is to ensure consistency and fairness in compensation assessment, irrespective of the nature of the injury.
The court recalled that the multiplier method was proposed by the Supreme Court in the case of Sarla Verma v Delhi Transport Corporation and has been reaffirmed in various subsequent cases. By adopting this method, the court aims to eliminate variation and inconsistency in compensation assessment, promoting uniformity and fairness.
Justice Jayachandran highlighted that the Supreme Court has already recognized the multiplier method as serving the cause of justice and reducing unnecessary disputes in motor vehicle accident cases. Therefore, the court rejected the argument that the multiplier method should not apply in cases of serious injuries and maintained its validity for all accident scenarios.
The High Court made these observations in response to two appeals against a Motor Accident Claim Tribunal's verdict. The tribunal had used the split multiplier method to calculate compensation, which involves using different multipliers for the pre-retirement and post-retirement periods. However, the court criticized the use of this method and affirmed the applicability of a standard multiplier of "14" in this case.
Upon reevaluating the claimant's case, the High Court increased the compensation payable under various heads, including loss of amenities, pain and suffering, and extra nourishment, applying the multiplier method. Consequently, the compensation was enhanced to approximately ₹ 7.6 lakhs.
Advocates PS Geetha Kumari and TR Sugunan represented the insurance claimant, while advocates VPK Panicker, Lal George, and Preethy R Nair represented the insurance company and the owner and driver of the bus. The High Court partly allowed the claimant's appeal and dismissed the insurance company's appeal, setting a precedent for fair and uniform compensation assessment in motor accident claim cases.
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TAGS: Kerala High Court Multiplier method Compensation Serious injuries Motor accidents The Oriental Insurance Company Ltd v Abdul Khader Justice C Jayachandran Uniformity Consistency Sarla Verma v Delhi Transport Corporation Split multiplier method Standard multiplier Compensation enhancement.
