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Head Note

Motor Vehicles Act,1988  - Section 166 , Section 173

Motor accident claims - Computation of compensation - Method of multiplier for computation by deducting 1/3rd is a well known method of computation of compensation in death or 100% disablement cases - Multiplier was evolved on the basis of prevalent interest rate of nationalized banks - If the rate of interest goes higher, the multiplier comes down - If the rate of interest comes down, multiplier has to be increased - Highest multiplier can be of 18 only - Principles laid down in Susamma Thomas and Trilok Chand's cases reiterated - However, normal rule of deprivation of income will not apply to cases where agricultural income is the source of deceased or injured.

Topic(s)-Computation of compensation

Important Decision(s)- 

• MAC - If the rate of interest goes higher, the multiplier comes down.
• MAC - If the rate of interest comes down, multiplier has to be increased.