NATIONAL INSURANCE CO.LTD. vs GURUMALLAMMA

The Supreme Court addressed the application of Section 163A of the Motor Vehicles Act, 1988, in determining compensation for a fatal accident. The Court held that the multiplier method should not be strictly applied in fatal accident cases, and the compensation should be calculated based on the structured formula provided in the Second Schedule. The Court found that the compensation awarded by the Tribunal and High Court was inadequate, and the amount should be adjusted to reflect a more accurate calculation based on the deceased's income and age, ultimately suggesting a compensation range of Rs.6,84,000 to Rs.7,60,000.