NATIONAL INSURANCE CO. LTD. versus SHYAM SINGH AND ORS.

Citation: [2011] 7 S.C.R. 810 · Decided: 04-07-2011 · Supreme Court of India · Bench: MUKUNDAKAM SHARMA · Disposal: Appeal(s) allowed
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Judgment (excerpt)

A 
8 
(2011) 7 S.C.R. 810 
NATIONAL INSURANCE CO. LTD. 
v. 
SHYAM SINGH AND ORS. 
(Civil Appeal No. 4921 of 2011) 
JULY 4, 2011 
[DR. MUKUNDAKAM SHARMA AND 
ANIL R. DAVE, JJ.] 
Motor Vehicles Act, 1988 - s. 163A; Second Schedule -
C Motor accident - Qeath of 19 year old unmarried young man 
- Compensati9n,..claim by his parents - Determination of 
multiplier - ffeld: Choice of multiplier is determined by the 
age of the deceased or claimants whichever is higher - In this 
case, a young unmarried man died in an accident leaving 
D behind aged parents :- Multiplier applied keeping in view the 
average age of the deceased's parents. 
Respondent No. 3 and 4 are parents of a 19 year old 
boy who died in a motor accident. They filed claim petition 
stating that the deceased was a young man of robust 
E health and was working as mechanical fitter in an 
Engineering Prism Cement Factory on a salary of Rs. 
4500/- per month and in total was getting Rs. 6000/- per 
month inclusive of salary and over-time allowance and 
was supporting his parents financially; and that after his 
F death, Respondents No. 3 and 4 were rendered without 
any financial support and deprived of the association and 
pleasure of having a family and grand children in future. 
The Motor Accident Claims Tribunal came to a finding 
G that the deceased was earning Rs. 3000/- per month and 
deducted 50% therefrom towards personal expenses, as 
he was a bachelor. Considering the age of the parents 
which was 56 and 55 years, it applied the Multiplier of 9, 
and awarded a total compensation of Rs. 1,72,000/- (Rs. 
H 
810 
NATIONAL INSURANCE CO. LTD. v. SHYAM SINGH 811 
AND ORS. 
1,62,000/- towards the loss of dependency+ Rs. 10,000/-
A 
towards conventional heads) alongwith 6% interest p.a. 
from the date of claim petition. Being aggrieved, 
Respondent 'No. 3 and 4 preferred miscellaneous appeal 
before the High Court for enhancement of amount of 
compensation. The High Co~rt enhanced the multiplier 
B 
to 18 instead of 9 and granted expenses to the tune of 
Rs. 15000/- under conventional heads. Accordingly, the 
High Court enhanced the.amount of compensation from 
Rs. 1,72,000/- to Rs. 3,39,000/-. 
The· question which· arose for consideration in the 
C 
instant appeal was whether the High Court correctly 
enhanced the multiplier keeping in view the age of the 
deceased which was 19 years. 
Allowing the appeal, the Court 
D 
HELD: 
The 
assessment of damages 
and 
compensation takes into account a number of 
imponderables. This Court in the case of Vijay Shankar 
Shinde dealt with the law with regard to determination of E 
the multiplier in a similar situation as in the present case. 
The Court held that the choice of multiplier is determined 
by the age of the deceased or claimants whichever is 
higher. It held that the selection of multiplier cannot in all 
cases be solely dependent on the age of the deceased. 
If a young man is killed iri the accident leaving behind 
aged parents who may not survive long enough to match 
with a high multiplier provided by the 2nd Schedule, then 
the Court has to offset such high multiplier and balance 
F 
the same wit~ the short life expectancy of the claimants. 
The dictum laid down in *Vijay Shankar Shinde is G 
applicable to the present case. Accordingly, it is held that 
the Tribunal had. rightfully applied the multiplier of 8 by 
taking the average of the parents of the deceased who 
were 55 and 56 years .. The award passed by the Tribunal 
is restored. [Paras 8, 9, 10, 11] [814-G; 815-C-H; 816-A-H] 
H 
812 
SUPREME COURT REPORTS 
[2011] 7 S.C.R. 
A 
General Manager, Kera/a State Road Transport 
Corporation, Trivandrum v. Mrs. Susamma Thomas and Ors. 
AIR 1994 SC 1631 and *V1fay Shankar Shinde and Ors. v. 
State of Maharashtra (2008) 2 SCC 670 - relied on. 
8 
Sar/a Verma (Smt.) and Others v. Delhi Transport 
Corporation andAnother (2009) 6 SCC 121 - referred to. 
c 
D 
Case Law Reference: 
(2009) 6 sec 121 
referred to 
AIR 1994 SC 1631 
relied on 
(2008) 2 sec 670 
relied on 
Para 5, 6 
Para 8 
Para 9, 10 . 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
4921 Of 2011. 
. 
From the Judgment & Order dated 15.3.2010 of the High 
Court of Madhya Pradesh Principal Seat at Jabalpur in Misc. 
Appeal No. 4867 of 2009. 
E 
Ramesh Chandra Mishra, Dr. Meera Agarwal for the 
Appellant. 
F 
Dr. Kailash Chand for the Respondents. 
The Judgment of the Court was deliver~d by 
DR. MUKUNDAKAM SHARMA, J.1. Leave granted. 
2. This appe
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