SHAKTI DEVI vs NEW INDIA INSURANCE CO. LTD.

The Supreme Court held that the compensation awarded under Section 166 of the Motor Vehicles Act, 1988 for the death of a 22-year-old in a motor accident was inadequate. The Court emphasized the application of the multiplier method for calculating compensation, which should reflect the dependency of the family on the deceased. The Court increased the compensation amount, recognizing the need for a fair assessment of loss, and directed the insurance companies to pay the revised amount with interest.