THE ORIENTAL INSURANCE CO. LTD. versus NIRU @ NIHARIKA & ORS.

Citation: [2025] 7 S.C.R. 474 · Decided: 14-07-2025 · Supreme Court of India · Bench: SUDHANSHU DHULIA · Disposal: Rejected

Judgment (excerpt)

[2025] 7 S.C.R. 474 : 2025 INSC 822
The Oriental Insurance Co. Ltd. 
v. 
Niru @ Niharika & Ors.
(Special Leave Petition (C) No. 11340 of 2020)
14 July 2025
[Sudhanshu Dhulia and K. Vinod Chandran,* JJ.]
Issue for Consideration
Whether any interference is required in the multiplier adopted 
by the Tribunal and affirmed by the High Court; Whether the 9% 
interest rate granted by the Tribunal is perfectly in order.
Headnotes†
Motor Vehicle Accident claim – Victim-deceased collided 
with a truck in the year 1995 – Victim died – Deceased was 
working as an Engineer with the Brtish Telecom and was 
paid in pounds – The wife and two minor children of the 
deceased sought compensation – Tribunal found the driver 
of the truck negligent – The income stood proved and the 
Tribunal adopted a multiplier of 13 and reduced 1/3rd of the 
income for personal expenses – Loss of dependency was 
computed at Rs.78,33,540/- to which award, Rs.40,000/- as 
loss of consortium and Rs.15,000/- each for loss of estate 
and funeral expenses were added – The total compensation 
awarded was Rs.79,04,540/- – The High Court affirmed the 
negligence of the truck driver and interfered with the quantum 
only to the extent of reducing the average exchange rate as 
existing in the years 1995 & 1996 – Whether the order of the 
High Court requires interference:
Held: Presumably the family pension was only payable to the wife 
and when she got remarried, the same was stopped – However, 
it cannot be said that the minor children were not entitled to the 
multiplier as adopted by the Tribunal – In such circumstances, 
there is no reason to interfere with the multiplier adopted by the 
Tribunal & affirmed by the High Court – The compensation for loss 
of dependency would thus be; Rs.56,165 x 130% x 12 x 13 x 2/3rd = 
Rs.75,93,508/- – To the said amount would be added Rs.70,000/-, 
* Author
[2025] 7 S.C.R. 
475
The Oriental Insurance Co. Ltd. v. Niru @ Niharika & Ors.
being the amounts granted by the Tribunal for loss of consortium, 
loss of estate and funeral expenses – The total award hence would 
be Rs.76,63,508/-, as determined by the High Court too – Further, 
9% interest rate granted by the Tribunal is perfectly in order – No 
illegality in awarding interest for future prospects – In SLP(C) 
No.11340 of 2020, the multiplier applied looking at the life span of 
the deceased and the claimants is 13 – Before the Tribunal itself, 
the case was pending for 12 years and the only amount received 
by the claimants was Rs.50,000/- – Hence though amounts are 
awarded for future prospects taking the multiplier of 13; in effect, 
the money is received only after the period for which the multiplier 
is adopted – Similar is the case in SLP(C) No.22136 of 2024 
where the accident occurred in 2018, the multiplier applied is 17 
and seven years have passed from the date of accident – The 
order of the High Court in both the cases is upheld and there is 
no reason to interfere with the same. [Paras 6, 8, 9, 12]
List of Keywords
Motor Vehicle Accident claim; Compensation; Multiplier; Loss of 
dependency; Loss of consortium; Loss of estate; Funeral Expenses; 
Rate of interest; Awarding interest for future prospects.
Case Arising From
CIVIL APPELLATE JURISDICTION: Special Leave Petition (C) 
No. 11340 of 2020
From the Judgment and Order dated 11.10.2019 of the High Court 
of Gujarat at Ahmedabad in FA No. 1789 of 2019
With
Special Leave Petition (C) No. 22136 of 2024
Appearances for Parties
Advs. for the Petitioner:
Aditya Kumar, Ms. Ila Nath, C. George Thomas, Abhishek Gola, 
Viresh B. Saharya, Anshul Mehral, Akshat Agarwal, Rishabh Sahai 
Mathur, Nishant.
Advs. for the Respondents:
Mohit D. Ram, Ms. Sthavi Asthana, Dr. Linto K.b., Sanjib 
Khandayatray, Duvvada Ramesh.
476
[2025] 7 S.C.R.
Supreme Court Reports
Judgment / Order of the Supreme Court
Judgment
K. Vinod Chandran, J.
1.	
The wife and two minor children of the deceased in a motor 
vehicle accident were before the Motor Accident Claims Tribunal 
for compensation on loss of dependency. The accident occurred on 
18.11.1995 when the deceased was travelling in a car which collided 
with a truck. On the allegation of rash and negligent driving of the 
truck, the claimants were before the Tribunal seeking compensation 
of Rs.1,00,00,000/- which was later amended and enhanced to 
Rs.1,30,00,000/-. The deceased alongwith his family, the claimants 
were residing in the United Kingdom. The deceased was a person 
with seve

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