The Supreme Court of India, in a significant judgment, has held that the concept of a “split multiplier”—calculating motor accident compensation differently for pre-retirement and post-retirement periods—is “foreign to the Motor Vehicles Act, 1988” and must not be used by Tribunals or Courts.

A bench comprising J ustice Sanjay Karol and Justice Prashant Kumar Mishra set aside a Kerala High Court judgment that had applied a split multiplier to reduce the compensation awarded to the family of a 51-year-old government engineer killed in a road accident. The Court allowed the appeal filed by the claimants, Preetha Krishnan & Ors. , and enhanced the total compensation to Rs. 47,76,794/-.

Background of the Case

The case arises from a motor accident on 3rd August 2012, which resulted in th

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