Court clarifies guidelines on compensation

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In Reshma Kumari & Ors v Madan Mohan & Ors, a three-judge bench of the Supreme Court held that the multiplier specified in the second schedule of the Motor Vehicles Act, 1988, need not be scrupulously followed for calculating compensation in accident claims.

Wrecked_scooter_motorbikeFor over a decade Supreme Court judges have expressed differing views about the application of the multiplier. While some judgments held that the table for calculating damages was “unworkable”, others maintained that the schedule was a good guide for computing compensation. As despite this controversy parliament had failed to amend the law for over two decades, a two-judge bench of the Supreme Court referred this case to a larger bench for a final view.

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The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.

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