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Motor accident claims: Multiplier cannot be reduced because victim was earning in foreign currency, says Supreme Court
The Business Guardian
|March 27, 2025
The court stated that the multiplier is fixed on the basis of the age of the victim and cannot be altered based on the ground of foreign income.
The Supreme Court in the case Shyam Prasad Nagalla & Ors. v. The Andhra Pradesh State Board Transport Corporation & Ors. observed and has held that the multiplier in motor accident claims cannot be reduced on the ground that the deceased was earning in foreign currency.
The court stated that the multiplier is fixed on the basis of the age of the victim and cannot be altered based on the ground of foreign income.
The court in the case held that the exchange rate which was prevalent on the date of the filing of the claim petition has to be adopted.
The bench comprising of Justice Sanjay Karol and Justice Prashant Kumar Mishra was hearing the present matter.
The bench referred to the case of Jiju Kuruvila v. Kunjujamma Mohan and DLF Ltd. v. Koncar Generators & Motors Ltd, wherein the court held that the filing date of the claim petition should determine the exchange rate.
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