In Brief
This landmark judgment settles conflicting precedents on motor vehicle accident compensation under the Motor Vehicles Act, 1988. A five-judge bench established a standardized methodology for computing loss of dependency in fatal accident claims. It approved fixed multipliers based on the victim's age and laid down different additions for future prospects: 50%, 30%, and 15% respectively for salaried persons below 40, 40–50, and 50–60 years; and 40%, 25%, and 10% for self-employed persons in the same age brackets. Deductions for personal living expenses follow a formula based on family size. Fixed amounts for conventional damages (loss of estate, consortium, funeral expenses) are enhanced at 10% every three years. The judgment reaffirms the binding force of coordinate bench precedents and rejects later judgments that contradicted earlier rulings without referral to a larger bench.
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