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SC holds in Motor Accident Claims, award of future prospects has to be as per age-group of deceased

The SC on June 12, 2020 {M.H. Uma Maheshwari & Ors. vs United India Insurance Co. Ltd. & Anr.} held that when the age of the deceased was considered in the group of 40 to 50 years, the High Court has committed error in granting only 15% towards future prospects instead of 30%. It was held that as per the judgments of the Court primarily the age group is to be considered. It was held that considering the age group as 40 to 50 years, when the multiplier of 13 is maintained by the High Court, there is no reason or justification for reducing the compensation by granting 15% towards future prospects. 

It was held by the Bench, comprising of Justice N.V. RAMANA, Justice R. SUBHASH REDDY and Justice SURYA KANT, that for application of multiplier, the High Court has also accepted the age group of the deceased between 40 and 50 years. In that view of the matter, there is no reason for reducing the compensation by granting future prospects at 15% only.

It was held by the SC that the compensation awarded by the Tribunal is just and reasonable and the same was interfered with by the High Court without any valid grounds, as such, the appeal was allowed. The SC set aside the judgment passed by the High Court of Karnataka at Bengaluru and restored the award by the Motor Accident Claims Tribunal.

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