Multiplier of seventeen is applicable for deceased aged twenty-eight years in motor accident compensation claims.

The appellant (Insurance Company) challenged the award dated 13.02.2020 passed by the Motor Accident Claims Tribunal, Jashpur, which fastened liability upon it to pay compensation to the claimants (the widow, minor son, and mother of the deceased Shailendra Lakda)

The Insurance Company contended that the deceased was himself negligent in driving

Conversely, the claimants filed a cross-objection seeking an enhancement of the award, arguing that the deceased’s income was undervalued and that an incorrect multiplier of 16 was applied given the deceased was 28 years old

1. Whether the Insurance Company could be absolved of liability on the grounds of the deceased’s alleged negligence

2. Whether the income of the deceased was correctly assessed by the Tribunal at Rs. 12,000/- per month

3. Whether the appropriate multiplier for a deceased aged 28 years is 16 or 17

The Court primarily applied Section 173 of the Motor Vehicles Act, 1988, regarding appeals against claim awards

It further relied on established actuarial principles for motor accident compensation, specifically the application of the multiplier system based on the age of the deceased, the addition of 40% for future prospects, and a 1/3 deduction for personal expenses where the deceased has three dependents

The High Court dismissed the Insurance Company's appeal, finding no merit in the argument regarding the deceased's negligence based on the evidence available on record

Regarding the claimants' cross-objection, the Court upheld the monthly income of Rs. 12,000/-, noting that the deceased's wife had herself pleaded and testified to this amount

However, the Court found a legal error in the Tribunal’s choice of multiplier; for a person aged 28, a multiplier of 17 is legally mandatory, whereas the Tribunal had applied 16

Consequently, the Court re-computed the "Loss of Income" by applying the 17 multiplier to the annual dependency of Rs. 1,34,400/- (after adding 40% future prospects and deducting 1/3 personal expenses), resulting in an enhanced sum

It enhanced the total compensation from Rs. 23,00,400/- to Rs. 24,34,800/-

The Court directed the Insurance Company to deposit the additional amount of Rs. 1,34,400/- with 6% interest per annum from the date of the claim application until realization

All other conditions of the original award remained intact