IMPORTANT LANDMARK SUPREME COURT JUDGEMENTS
1. Smt. Sarla Verma & Othrs Vs. Delhi Transport Corporation and another
April 15, 2009:
Filed by the claimants for seeking increase in compensation
claimants in case of death claim for compensation must establish:
● age of the deceased;
● income of the deceased; and
● the number of dependants.
The SC directed:
To have uniformity and consistency, Tribunals should determine compensation in cases
of death, by the following well settled steps:
Step 1 (Ascertaining the multiplicand) The income of the deceased per annum should be
determined. Out of the said income a deduction should be made in regard to the amount
which the deceased would have spent on himself by way of personal and living expenses.
The balance, which is considered to be the contribution to the dependant family, constitutes
the multiplicand.
Step 2 (Ascertaining the multiplier) Having regard to the age of the deceased and period of
active career, the appropriate multiplier should be selected. This does not mean
ascertaining the number of years he would have lived or worked but for the accident.
Having regard to several imponderables in life and economic factors, a table of multipliers
with reference to the age has been identified by this Court. The multiplier should be chosen
from the said table with reference to the age of the deceased.
Step 3 (Actual calculation) The annual contribution to the family (multiplicand) when
multiplied by such multiplier gives the `loss of dependency' to the family.
● introduced Future Prospects for computing income
● Standardizing multiplicand scale
● standardising multiplier scale
The multiplier to be used should be (prepared by applying Susamma Thomas, Trilok
Chandra and Charlie), which starts with an operative multiplier of 18 (for the age groups
of 15 to 20 and 21 to 25 years), reduced by one unit for every five years, that is M-17 for
26 to 30 years, M-16 for 31 to 35 years, M-15 for 36 to 40 years, M-14 for 41 to 45 years,
and M-13 for 46 to 50 years, then reduced by two units for every five years, that is, M-11
for 51 to 55 years, M-9 for 56 to 60 years, M-7 for 61 to 65 years and M-5 for 66 to 70
years.
2. National Insurance Co. Ltd. Vs. Pranay Sethi judgement 31st October 2017
:
Changes in the components of computing Special Damages or pecuniary losses:
● Standardization of Multiplier:
The age of the deceased is the basis for applying suitable multiplier
In death cases where application has been made u/s 166, the multiplier as
indicated in Column (4) of the Table in Sarla Verma should be followed.
Age band Multiplier
15-20, 21to25 18
26-30 17
31-35 16
36-40 15
41-45 14
46-50 13
51-55 11
56-60 9
61-65 7
66-70 5
● Standardizing Future Prospects:
● The compensation is to be determined keeping in view the future prospects –
● standardisation formula for awarding future income should be applied to self-
employed persons also
The self-employed and persons with fixed salary were also allowed future prospects as
below:
Salary from Addition for future Self-
permanent Job prospects employed/persons
with fixed salary
Below 40 50% Below 40 40%
40-50 years 30% 40-50 years 25%
More than 50 15% More than 50 10%
● Deduction towards personal expenses are also standardized by this judgement
as below:
Bachelor Married
Only parents ½ 2 to 3 1/3
If siblings also 1/3 4 to 6 ¼
More than 6 1/5
● Revision in compensation under conventional heads:
General damages or non-pecuniary losses
Loss of estate - Rs.15,000
Loss of Consortium - Rs.40,000
Funeral expenses - Rs.15,000
To enhance with increment of 10% in a span of three years
● Compensation under head Loss of Consortium awarded by Pranay Sethi was
reviewed by judgement Magma General Insurance Vs. Nanu Ram 2018 Hon’ble
SC of India as:
The parents are eligible for filial consortium for the death of their children
The children are eligible for parental consortium
The amounts are as fixed by Pranay Sethi Judgement
Consortium:
● The right to consortium would include the company, care, help, comfort,
guidance, solace and affection of the deceased, which is a loss to his family.
With respect to a spouse, it would include sexual relations with the deceased
● Modified the concept of consortium –
Parental consortium is granted to the child upon the premature death of a parent, for
loss of parental aid, protection, affection, society, discipline, guidance and training.
Filial consortium is the right of the parents to compensation in the case of an accidental
death of a child
3. Mukund Dewangan Vs. Oriental Ins. Co. Ltd. 3 July 2017:
'transport vehicle' and 'omnibus' the "gross vehicle weight" of either of which does not
exceed 7500 kg. would be a "light motor vehicle" and also motor car or tractor or a road
roller, "unladen weight" of which does not exceed 7500 kg. and holder of a licence to
drive the class of "light motor vehicle" would be competent to drive a transport vehicle or
omnibus, the "gross vehicle weight" of which does not exceed 7500 kgs. or a motor car
or tractor or road roller, the "unladen weight" of which does not exceed 7500 kgs.
Definitions GVW and ULW:
“gross vehicle weight” means in respect of any vehicle the total weight of the vehicle
and load certified and registered by the registering authority as permissible for that
vehicle;
"unladen weight" means the weight of a vehicle or trailer including all equipments
ordinarily used with the vehicle or trailer when working, but excluding the weight of a
driver or attendant; and where alternative parts or bodies are used the unladen weight
of the vehicle means the weight of the vehicle with the heaviest such alternative part or
body;
Definition – Transport vehicle:
Thus, the newly incorporated expression ‘transport vehicle’ would include only the
vehicles of the category - heavy goods vehicle, heavy passenger motor
vehicle, medium goods vehicle and medium passenger motor vehicle, and would not
include the ‘light motor vehicle’.
Conclusion:
The effect of amendment of Form 4 by insertion of “transport vehicle” is related only to
the categories which were substituted in the year 1994 and the procedure to obtain
driving licence for transport vehicle of class of “light motor vehicle” continues to be the
same as it was and has not been changed and there is no requirement to obtain
separate endorsement to drive transport vehicle, and if a driver is holding licence to
drive light motor vehicle, he can drive transport vehicle of such class without any
endorsement to that effect.
