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Supreme Court of India 2021-10-25 allowed

N. JAYASREE & ORS vs CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LTD

Bench: 2 — S. Abdul Nazeer, Krishna Murari

In Brief

A 52-year-old Assistant Professor died in a motor vehicle accident, leaving behind his wife, two daughters, and mother-in-law. The family sought compensation. The High Court excluded the mother-in-law as a legal representative and reduced compensation by using a split multiplier. The Supreme Court held that 'legal representative' under the Motor Vehicles Act must be interpreted liberally to include dependents who suffered loss, such as the mother-in-law who lived with the deceased. The Court rejected the split multiplier approach and awarded compensation based on the deceased's actual income (Rs. 8,87,148) plus 15% for future prospects, applying a multiplier of 11 and deducting one-fourth for personal expenses. Total compensation of Rs. 85,81,815 with 7.5% interest was awarded.

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Motor Vehicles Act Compensation Motor Accident Claims Dependency Legal Representatives

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