Created byFuzzy Cloud

Supreme Court of India

PREETHA KRISHNAN & ORS.versusTHE UNITED INDIA INSURANCE CO. LTD. & ORS.

Citation
2025 INSC 1293
Decided
6 November 2025
Disposal
Appeal(s) allowed

Holding

The split multiplier is a concept foreign to the Motor Vehicles Act, 1988 and may be employed only in exceptional circumstances, which retirement does not constitute; therefore the High Court's reduction is set aside and compensation is calculated using the standard multiplier.

Summary

The deceased, an Assistant Engineer aged 51, died in a road accident and his wife and children claimed compensation under Section 166 of the Motor Vehicles Act, 1988. The Motor Accidents Claims Tribunal awarded Rs.44,04,912, applying a multiplier of 9 and other heads of loss. The Kerala High Court reduced the loss of dependency component to Rs.35,10,144 by applying a split multiplier, citing post‑retirement income reduction, and altered other heads of loss. The appellants challenged this reduction, arguing that the split multiplier is not authorized by the Act and that retirement is not an exceptional circumstance. The Supreme Court held that the split multiplier is foreign to the Motor Vehicles Act and may be used only in truly exceptional cases, which superannuation does not qualify as, and reinstated the compensation calculated with the standard multiplier of 11, resulting in a total of Rs.47,76,794. Consequently, the Supreme Court allowed the appeals and modified the award accordingly.

Issues considered

  • Whether a split multiplier can be applied in calculating compensation under Section 166 of the Motor Vehicles Act, 1988.
  • Whether retirement or superannuation of the deceased constitutes an exceptional circumstance justifying the use of a split multiplier.
  • Whether the High Court erred in reducing the loss of dependency component by applying a split multiplier.

Legislation cited

Headnote

Issue for Consideration Grievance of the claimant-appellants is w.r.t the application of split multiplier by the High Court, causing a significant reduction in the total compensation, as awarded by the Tribunal, vis-à-vis, the Act, 1988 – Motor Accident Claim – Compensation – Calculation of – Application of split multiplier – Impermissibility – Deceased, an Assistant Engineer in the PWD, aged 51 years died in a car accident – Appellants (wife and children of the deceased)

Subjects

split multiplierMotor Vehicles Actcompensation calculationloss of dependencypost‑retirement income reductionsuperannuationmotor accident claim

Judgment

                [2025] 11 S.C.R. 487 : 2025 INSC 1293

                     Preetha Krishnan & Ors.
                                 v.
             The United India Insurance Co. Ltd. & Ors.
           (Special Leave Petition (Civil) No(s). 9753-56 of 2025)
                              06 November 2025
           [Sanjay Karol* and Prashant Kumar Mishra, JJ.]


                            Issue for Consideration
       Grievance of the claimant-appellants is w.r.t the application of
       split multiplier by the High Court, causing a significant reduction
       in the total compensation, as awarded by the Tribunal, vis-à-vis,
       the High Court.

                                   Headnotes†
       Motor Vehicles Act, 1988 – Motor Accident Claim –
       Compensation – Calculation of – Application of split
       multiplier – Impermissibility – Deceased, an Assistant Engineer
       in the PWD, aged 51 years died in a car accident – Appellants
       (wife and children of the deceased) sought compensation of
       Rs.60,00,000/-, stating that the deceased earned Rs.47,860/-
       p.m – Tribunal awarded Rs.44,04,912/- to the appellants
       with interest @ 7.5% p.a – High Court inter alia reduced the
       compensation under the head of loss of dependency from
       Rs.42,29,712/- to Rs.35,10,144/-, by applying a split multiplier
       considering the post-retirement reduction in the income
       of the deceased, thereby deducting the excess amount of
       Rs.7,19,568/- – Review petitions rejected by High Court –
       Challenge to:
       Held: Split multiplier is a concept foreign to the Motor Vehicles
       Act, 1988 and is not to be used by the Tribunal and/or Courts
       in calculation of the compensation – The income as on the date
       of death is to be taken to calculate the compensation – A split
       multiplier is not to be adopted, as a matter of course, and is only to
       be used in the exceptional circumstances, with such circumstances
       being recorded – Superannuation from service hardly qualifies as
       such an exceptional circumstance, which would justify the use of
       split multiplier – It is only a natural progression that a person who


* Author
488                                                             [2025] 11 S.C.R.

                            Supreme Court Reports


       enters service must also exit at some point in time – The same
       cannot be taken as a negative circumstance against the deceased
       person or a person injured severely, leading to incapacitation
       or permanent disability – High Court failed to comply with the
       directives issued in Pranay Sethi i.e., granting 10% enhancement,
       every three years under the conventional heads – Multiplier of
       11 applied, compensation payable to the appellants enhanced
       to Rs.47,76,794/- – Impugned Award passed by the Tribunal, as
       modified by the High Court vide the impugned judgment; and
       judgement in review petitions, modified accordingly. [Paras 17-20]

       Directions by Supreme Court – Motor Vehicles Act, 1988 – Motor
       Accident Claim – Compensation – Calculation of – Application
       of split multiplier – Divergent opinion of High Courts:
       Held: Split multiplier is a concept foreign to the Motor Vehicles
       Act, 1988 and is not to be used by the Tribunal and/or Courts
       in calculation of the compensation – A split multiplier is not to
       be adopted, as a matter of course, and is only to be used in
       the exceptional circumstances, with such circumstances being
       recorded – Directions issued to apply prospectively and the
       conclusions arrived at regarding the split multiplier, shall not affect
       the judgments of the High Courts noticed – A copy of this order to
       be circulated to the Registrars General of all the High Courts for
       necessary information and compliance and also to the Tribunals.
       [Para 22]

                                 Case Law Cited
       National Insurance Co. Ltd. v. Pranay Sethi [2017] 13 SCR 100 :
       (2017) 16 SCC 680 – followed.
       Sarla Verma v. DTC [2009] 5 SCR 1098 : (2009) 6 SCC 121; N.
       Jayasree & Ors. v. Cholamandalam MS General Insurance Co.
       Ltd. [2021] 6 SCR 1001 : (2022) 14 SCC 712; Sumathi v. National
       Insurance Co. Ltd., 2021 SCC Online SC 3697 – relied on.
       K.R. Madhusudhan v. Administrative Officer [2011] 2 SCR 1061 :
       (2011) 4 SCC 689; Puttamma v. K.L. Narayana Reddy & Ors.
       [2013] 16 SCR 83 : (2013) 15 SCC 45 – referred to.

                                   List of Acts
       Motor Vehicles Act, 1988.
[2025] 11 S.C.R.                                                        489

Preetha Krishnan & Ors. v. The United India Insurance Co. Ltd. & Ors.


                                List of Keywords
     Split multiplier; Application of split multiplier; Calculation of
     compensation; Reduction in total compensation; Post-retirement
     reduction in income of deceased; Superannuation from service
     not an exceptional circumstance.

                                Case Arising From
     CIVIL APPELLATE JURISDICTION: Special Leave Petition (Civil)
     No(s). 9753-9756 of 2025
     From the Judgment and Order dated 28.06.2024 and 27.11.2024
     of the High Court of Kerala at Ernakulam in MACA Nos. 210 and
     1219 of 2015 in RP Nos. 1187 and 1165 of 2024

                          Appearances for Parties
     Advs. for the Petitioners:
     Bijo Mathew Joy, Ms. Gifty Marium Joseph.
     Advs. for the Respondents:
     Pradeep Gaur, Amit Gaur, Ms. Sweta Sinha, Rameshwar Prasad
     Goyal.

                Judgment / Order of the Supreme Court

                                   Judgment

     Sanjay Karol, J.


       Ti m e t a k e n f o r     Time taken for      Time taken for
       disposal of the            disposal of the     disposal of the
       claim petition by          appeals by the      appeals in this
       the MACT                   High Court          Court

        1 year 3 months            9 years 2 months   8 months 23 days
            22 days                  and 20 days


     Leave granted.

2.   These appeals are directed against the judgment and order dated
     28th June 2024, passed in MACA No.210 and 1219 of 2015; and
490                                                          [2025] 11 S.C.R.

                                    Supreme Court Reports


       Judgment and order dated 27.11.24 in R.P.Nos.1165 and 1187 of
       2024 by the High Court of Kerala at Ernakulam, which, in turn,
       were preferred against the order dated 2nd April 2014 in O.P. (M.V.)
       No.1105/2012, passed by the Motor Accidents Claims Tribunal, Pala1.
3.     The brief facts giving rise to these appeals are that on 3rd August
       2012, the deceased, namely, T.I. Krishnan, aged 51 years, was
       driving his car, bearing registration No.KL-5/M-1062 through the
       Pala-Thodupuzha Road. A bus bearing registration No.KL-38/B-1833,
       driven in a rash and negligent manner, collided with the car of the
       deceased. As a result of the incident, the deceased sustained severe
       injuries and died on his way to the hospital.
4.     A claim petition was filed on behalf of the claimant-appellants (the
       wife and children of the deceased) under Section 166 of the Motor
       Vehicles Act, 1988, before the Tribunal, on 11th December 2012
       seeking compensation to the tune of Rs.60,00,000/-, stating therein
       that the deceased used to earn Rs.47,860/- per month, by working
       as an Assistant Engineer in the Public Works Department.
5.     The Tribunal vide its order dated 2nd April 2014, awarded an amount
       of Rs.44,04,912/- to the claimant-appellants along with an interest
       @ 7.5% per annum from the date of filing the claim petition. The
       Tribunal, considering the evidence on record, determined the income
       of the deceased to be Rs.45,408/- per month (post deduction of
       Rs.2,453/- per month payable as taxes). Since the deceased was
       aged 51 years, future prospects of 15% was applied to his income. A
       deduction of 1/4th of the income was made towards living expenses
       and a multiplier of 9 (considering the facts that one of the petitioners
       is a government employee and other is a doctor) was applied. Further,
       the Tribunal awarded Rs.1,00,000/- towards loss of consortium;
       Rs.25,000/- towards funeral expenses; Rs.40,000/- for loss of love
       and affection; and Rs.5000/- for loss of estate.
6.     Aggrieved by the compensation awarded by the Tribunal, the insurer
       as well as the claimant-appellants filed MACA Nos. 210 of 2015 and
       1219 of 2015 respectively, before the High Court.
7.     The High Court, vide the impugned judgment, partly allowed the
       appeals and reduced the compensation under the head of loss of
       dependency from Rs.42,29,712/- to Rs.35,10,144/-, by applying


1    Hereinafter referred as ‘Tribunal’
[2025] 11 S.C.R.                                                        491

Preetha Krishnan & Ors. v. The United India Insurance Co. Ltd. & Ors.


     a split multiplier considering the post-retirement reduction in the
     income of the deceased, thereby deducting the excess amount of
     Rs.7,19,568/-. The Court further enhanced the compensation under
     the heads - loss of consortium and loss of love and affection to
     Rs.1,60,000/-. The amount awarded towards funeral expenses was
     reduced to Rs.15,000/-, while the amount under the head loss of
     estate was enhanced to Rs.15,000/-. The High Court also directed
     the Tribunal to disburse the amount to claimant-appellants Nos.1 to 4
     (Appellants in MACA No. 1219 of 2015) in the ratio of 70:10:10:10.
8.   Aggrieved by the judgment and order passed by the High Court, the
     claimant-appellants filed RP No.1165 of 2024 arising from MACA
     No.210 of 2015 and RP No.1187 of 2024 arising from MACA No.1219
     of 2015. The High Court, however, rejected these applications for
     review, stating that if reasons are recorded, split multiplier would
     be possible.
9.   Dissatisfied with the judgment dated 28th June 2024 and final orders
     passed in RP Nos.1165 of 2024 and 1187 of 2024 by the High Court,
     the claimant-appellants are now before us.
10. The point of challenge taken is that the High Court erred in applying
    split multiplier without considering the possibility of the deceased
    continuing to earn even after retirement. It is further contended that
    the Courts failed to appreciate the educational qualification and
    professional experience of the deceased, which could have secured
    him a placement in the construction sector, even after his retirement.
11. We have heard the learned counsel for the parties.
12. The main grievance of the claimant-appellants is the application of
    split multiplier by the High Court, causing a significant reduction in
    the total compensation, as awarded by the Tribunal, vis-à-vis, the
    High Court. We find force in this point of challenge. The reasoning
    adopted by the High Court in applying a split multiplier is that the
    deceased would have shortly superannuated from service. Thereafter,
    there would have been a 50% (approx. reduction) in his monthly
    take-home pay.
13. We find that there are divergent views of the High Courts regarding
    the use of split multiplier. Some judgments support its application while
    others explicitly reject the same. Below is a tabular representation,
    illustrative in nature, of certain judgments accepting the use of
    split multiplier, while others passed by the same Court rejecting it.
492                                                          [2025] 11 S.C.R.

                           Supreme Court Reports


       The common factor to be noted, in all these judgments is that the
       person involved in the accident or the person who passed away as
       a result of the accident, were employed in jobs that had a definite
       retirement age.

       SJ: Single Judge
       DB: Division Bench

             Split Multiplier Applied          Split Multiplier not Applied

                                   Delhi High Court

                                           (SJ)
                                           Usha Grover v. HDFC Ergo General
                                           Insurance Co. Ltd.,
                                           2012 SCC OnLine Del 3760

                                           (SJ)
                                           Bajaj Allianz General Insurance Co.
                                           Ltd. v. Neeru Sain,
                                           2012 SCC OnLine Del 2472

                                  Bombay High Court

                                           (SJ)
                                           United India Insurance Co. Ltd. v.
                                           Shakuntala Babasaheb Dhaktode,
                                           2015 SCC OnLine Bom 6842

                                  Gauhati High Court

                                           (SJ)
                                           Ranjita Seal v. Lal Chand Sharma,
                                           2022 SCC OnLine Gau 250

                                 Karnataka High Court

        (DB)                               (DB)
        Branch Manager v. Mallamma,        New India Assurance Co. Ltd. v.
        2023 SCC OnLine Kar 219            Tappa Sujatha,
                                           2025 SCC OnLine Kar 11321

        (DB)                               (DB)
        IFFCO Tokio GIC Ltd. v. A.S.       Suvarna v. Kishan,
        Mohan Sunder,                      2024 SCC OnLine Kar 2578
        2020 SCC OnLine Kar 1776
[2025] 11 S.C.R.                                                               493

Preetha Krishnan & Ors. v. The United India Insurance Co. Ltd. & Ors.



      (SJ)                                 (SJ)
      Senior Divisional Manager v.         Sundaramma v. N.D.
      Jyotiba Appaji Shigate, 2019 SCC     Chandrashekar,
      OnLine Kar 3908                      2024 SCC OnLine Kar 13379

      (DB)                                 (DB)
      Sayeda v. P. Murgan,                 Gouramma v. A.V.V. Bhadra Rao,
      2016 SCC OnLine Kar 777              2018 SCC OnLine Kar 1892

      (DB)                                 (DB)
      Yashodamma v. Ravindra,              Reliance General Insurance
      2014 SCC OnLine Kar 9592             Company Ltd. v. M.
                                           Jayalakshmamma,
                                           2017 SCC OnLine Kar 6507

                                  Kerela High Court

      (SJ)                                 (SJ)
      National Insurance Company           United India Insurance Co. Ltd. v.
      Limited v. J.C. Bose, 2020 SCC       Preetha Krishnan,
      OnLine Ker 6564                      2024 SCC OnLine Ker 3526

      (DB)                                 (SJ)
      Vinod K.Y. v. Sunny Kurien,          Baby Girija v. Thameem R.C.,
      2017 SCC OnLine Ker 39482            2022 SCC OnLine Ker 4088

      (DB)                                 (SJ)
      Oriental Insurance Co. Ltd. v.       Oriental Insurance Co. Ltd. v. R.
      Noorjahan M.,                        Jenova,
      2017 SCC OnLine Ker 34559            2020 SCC OnLine Ker 6562

      (DB)                                 (SJ)
      K. Ramanathan v. Jayan Poulose,      Oriental Insurance Company
      2017 SCC OnLine Ker 36615            Limited v. Lucy,
                                           2018 SCC OnLine Ker 13107

      (DB)
      Special Grade Secretary v.
      Maniammal,
      2017 SCC OnLine Ker 20075

                                 Madras High Court

       (SJ)                                (DB)
       M. Valarmathi and Others ν. T.S.    Branch Manager, Royal Sundaram
       Rajan and Another                   Alliance Insurance Co. Ltd ν. Alli
       2019 SCC OnLine Mad 5490            and Others
                                           2021 SCC OnLine Mad 1178
494                                                            [2025] 11 S.C.R.

                          Supreme Court Reports



       (DB)                                 (SJ)
       Branch Manager, National             The Branch Manager, SETC TVL
       Insurance Co. Ltd. ν. M. Arulmozhi   Limited, ν. Sethu
       2013 SCC OnLine Mad 3416             2015 SCC OnLine Mad 12761

                                High Court of Orissa

                                            (SJ)
                                            Puspalata Sahu v. Jagdish Prasad
                                            Mohanty,
                                            2012 SCC OnLine Ori 16

                                            (SJ)
                                            Bajaj Allianz General Insurance Co.
                                            Ltd. v. Samita Maharana,
                                            2022 SCC OnLine Ori 1994

                         High Court of Punjab and Haryana

       (SJ)                                 (SJ)
       Birmati v. Mukesh Kumar,             Slier Singh v. Naresh Kumar,
       2016 SCC OnLine P&H 19759            2019 SCC OnLine P&H 6835

                                Rajasthan High Court

                                            (SJ)
                                            United India Insurance Co. Ltd. v.
                                            Santosh,
                                            2014 SCC OnLine Raj 1652

                              High Court of Allahabad

                                            (SJ)
                                            Tata A.I.G. General Insurance Co.
                                            Ltd. v. Amar Kaur,
                                            2022 SCC OnLine All 1809


14. As can be seen from the above table, there is diverging opinion on
    the application of split multiplier. While certain High Courts have
    differences intra-court, there also exists inter-court difference. What
    is more concerning to us, is the former. Given that there was no
    uniformity of opinion within a single Court, the Tribunal below is left
    bereft of guidance leading to differences in compensation awarded
    for no justifiable reason. This also creates a concerning situation for
    judicial discipline. We have found instances where a division bench
    has applied the concept, but a learned single Judge has refused to
[2025] 11 S.C.R.                                                              495

    Preetha Krishnan & Ors. v. The United India Insurance Co. Ltd. & Ors.


        do so, subsequently. Further, when there are differences of opinion
        in benches of equal strength, it is incumbent upon the Court to seek
        to resolve by referring the issue to a bench of larger composition.
15. There can be no gainsaying that the judgment of this Court in
    Sarla Verma v. DTC2 represented the coming of a much more
    structured, uniform method of calculation of compensation in motor
    accident cases insofar as the multiplier to be applied is concerned.
    In this judgment itself, it was observed that the practice of applying
    multiplier which is equivalent to the number of years the deceased
    or the injured person had left in service, is the confusion that has
    to be avoided.
              “41. ... Some tribunals, as in this case, apply the multiplier
              of 22 by taking the balance years of service with reference
              to the retiring age. It is necessary to avoid this kind of
              inconsistency. We are concerned with cases falling under
              Section 166 and not under Section 163-A of the MV Act.
              In cases falling under Section 166 of the MV Act, Davies
              method [Davies v. Powell Duffryn Associated Collieries
              Ltd., 1942 AC 601 : (1942) 1 All ER 657 (HL)] is applicable.
              42. We therefore hold that the multiplier to be used should
              be as mentioned in Column (4) of the table above (prepared
              by applying Susamma Thomas [(1994) 2 SCC 176 : 1994
              SCC (Cri) 335] , Trilok Chandra [(1996) 4 SCC 362] and
              Charlie [(2005) 10 SCC 720 : 2005 SCC (Cri) 1657] ),
              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.”
16. It has been held time and again by this Court that a split multiplier is
    not to be adopted, as a matter of course, and is only to be used in the
    exceptional circumstances, with such circumstances being recorded.


2     (2009) 6 SCC 121
496                                                          [2025] 11 S.C.R.

                              Supreme Court Reports


       [See Sarla Verma and Ors. vs. DTC and Ors.3] Reference may
       be made to N. Jayasree & Ors. v. Cholamandalam MS General
       Insurance Co. Ltd.4, this Court held that the application of a split
       multiplier in a case involving a 52-year-old Assistant Professor
       of Mathematics was not justified. It was observed in reference to
       National Insurance Co. Ltd. v. Pranay Sethi5 that the Rule of
       Thumb of adding 15% of the salary as future prospects in cases
       where the deceased was between the age of 50 and 60 was not to
       be deviated from.
17. Superannuation from service hardly qualifies as such an exceptional
    circumstance, which would justify the use of split multiplier. It is
    only a natural progression that a person who enters service must
    also exit at some point in time. The same cannot be taken as a
    negative circumstance against the deceased person or a person
    injured severely, leading to incapacitation or permanent disability.
    The position, in our considered view, is evidently clear from what
    stood observed by this Court in Sumathi v. National Insurance
    Co. Ltd.6, as under :
            ‘....it is clear that in normal course, the compensation
            is to be calculated by applying the multiplier, as per the
            judgment of this Court Sarla Verma2. Split multiplier cannot
            be applied unless specific reasons are recorded. The
            finding of the High Court that the deceased was having
            leftover service of only four years, cannot be construed
            as a special reason, for applying the split multiplier for the
            purpose of assessing the compensation. In normal course,
            compensation is to be assessed by applying multiplier as
            indicated by this Court in the judgment in Sarla Verma2.
            As no other special reason is recorded for applying the
            split multiplier, judgment1 of the High Court is fit to be set
            aside by restoring the award of the Tribunal.’
                                                   (Emphasis supplied)



3   (2009) 6 SCC 121
4   (2022) 14 SCC 712
5   (2017) 16 SCC 680
6   2021 SCC Online SC 3697
[2025] 11 S.C.R.                                                        497

    Preetha Krishnan & Ors. v. The United India Insurance Co. Ltd. & Ors.


18. The judgment referred to by the learned Single Judge in the impugned
    judgment, i.e., K.R. Madhusudhan v. Administrative Officer7 and
    Puttamma v. K.L. Narayana Reddy & Ors.8, in our considered view,
    does not support the use of a split multiplier. In both these judgments,
    this Court has held that there have to be cogent reasons recorded
    for its use. As already observed above, retirement from service is
    not ‘out of the ordinary’, ‘exceptional’ and ‘cogent’ for the same to
    qualify. It is also, a matter of considerable difficulty to conceive what
    such cogent or exceptional circumstances may be. In any event,
    the Constitution Bench in Pranay Sethi (supra) had, in para 59.7
    observed that the age of the deceased is the criterion to be utilized
    for multiplier. It does not provide for any other possibilities. This, in
    our considered view, does not even leave open the possibility of
    employment of split multiplier, whatsoever. As such, when dealing
    with a beneficial legislation which relies on just compensation as its
    bedrock, it is most prudent to tread the path of certainty, insofar as
    practicable. This is more so important in the context of age which is
    the primary basis for computation of compensation. In other words,
    split multiplier is a concept foreign to the Motor Vehicles Act, 1988
    and is not to be used by the Tribunal and/or Courts in calculation
    of the compensation.
19. Concluding the issue of income, we hold that the income as on
    the date of death is to be taken to calculate the compensation. We
    further notice that the High Court failed to comply with the directives
    issued in Pranay Sethi (supra) i.e., granting 10% enhancement,
    every three years under the conventional heads. In accordance
    with the above discussion, the compensation now payable to the
    claimant-appellant is as under:

                         CALCULATION OF COMPENSATION

            Compensation         Amount Awarded       In Accordance
               Heads                                       with:

         Monthly Income            Rs.45,408/-

         Yearly Income             Rs.5,44,896/-



7     (2011) 4 SCC 689
8     (2013) 15 SCC 45
498                                                           [2025] 11 S.C.R.

                            Supreme Court Reports



       Future Prospects         5,44,896 + 81,734    National Insurance
       (15%) (Age being 51                           Co. Ltd. v. Pranay
                                 = Rs.6,26,630/-
       years)                                              Sethi

       Deduction (1/4)         6,26,630 – 2,08,876   (2017) 16 SCC 680

                                 = Rs.4,17,754/-     Para 37, 39, 41, 42
                                                          and 59.4
       Multiplier (11)            4,17,754 X 11
                                 = Rs.45,95,294/-

       Loss of Income of the                Rs.45,95,294/-
       Deceased

       Loss of Estate              Rs.18,150/-       National Insurance
                                                     Co. Ltd. v. Pranay
       Loss of Funeral             Rs.18,150/-             Sethi
       Expenses
                                                     (2017) 16 SCC 680
                                                             Para 59.8

       Loss of Consortium           48,400 X 3       National Insurance
                                                     Co. Ltd. v. Pranay
                                 = Rs.1,45,200/-
                                                           Sethi
                                                     (2017) 16 SCC 680
                                                             Para 59.8
                                                         United India
                                                     Insurance Co. Ltd.
                                                      v. Satinder Kaur,
                                                     (2021) 11 SCC 780
                                                         Para 37.12
                                                     Rajwati alias Rajjo
                                                     and Ors v. United
                                                      India Insurance
                                                     Company Ltd. and
                                                            Ors.
                                                      2022 SCC Online
                                                          SC 1699
                                                             Para 34

               Total                        Rs.47,76,794/-
[2025] 11 S.C.R.                                                     499

Preetha Krishnan & Ors. v. The United India Insurance Co. Ltd. & Ors.


     Thus, the difference in compensation is as under:

               MACT                High Court        This Court
           Rs.44,04,912/-        Rs.35,10,144/-     Rs.47,76,794/-

20. The Civil Appeals are allowed in the aforesaid terms. The impugned
    Award dated 2nd April 2014 passed in O.P.(MV) No. 1105 of 2012
    by the Tribunal, as modified by the High Court of Kerala, vide the
    impugned judgment dated 28th June 2024, passed in MACA Nos.210
    of 2015 and 1219 of 2015; and judgement and order dated 27.11.24
    in R.P.Nos.1165 and 1187 of 2024 shall stand modified accordingly.
    Interest on the amount is to be paid as awarded by the Tribunal. In
    the end, we may only record our surprise regarding the approach
    adopted by the High Court despite clear observations in Sumathi
    (supra).
21. The amount be directly remitted into the bank account of the claimant-
    appellants as directed by the High Court. The particulars of the bank
    accounts are to be immediately supplied by the learned counsel for
    the appellant to the learned counsel for the respondent. The amount
    be remitted positively before 30th November, 2025.
22. We clarify that the directions issued by this order shall apply
    prospectively and the conclusions arrived at regarding the split
    multiplier, shall not affect the judgments of the High Courts noticed
    by us above. That was done only for the purpose of demonstrating
    the difference of opinion prevalent on this issue as also shedding
    light on the situation which comprises judicial propriety. A copy of
    this order is directed to be circulated by the Registrar (Judicial) of
    this Court to the learned Registrars General of all the High Courts
    for necessary information and compliance. It is requested that an
    e-copy of the order be also circulated to the Tribunals forthwith.
     Pending application(s), if any, shall stand disposed of.

     Result of the case: Appeals allowed.




     †
         Headnotes prepared by: Divya Pandey


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "split multiplier"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.

PREETHA KRISHNAN & ORS. versus THE UNITED INDIA INSURANCE CO. LTD. & ORS. — 2025 INSC 1293 - Legal Desk AI