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Compensation – Application of “Split Multiplier” for reduction in loss of dependency – pre & post-retirement income

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On 7.3.2014, the deceased while walking on the road was given dash by the offending bus and died.  He was in BSNL as phone mechanic. The deceased was close to 58 years of age and would have retired in the next 2-3 years.  After retirement, he would have received pension and not salary.

The insurance compensation of Rs.28,66,994/- awarded by the Tribunal was reduced to Rs.19,66,833/- by the High Court on the ground that the deceased was to remain in service for two years.  Split method of calculation of dependency was applied.

The Courts and Tribunals have normally to apply the multiplier as per its judgment in Sarla Verma case (2009 (6) SCC 121).  Any deviation from the same warrants special reasons to be recorded.   In the case in hand, neither any special reason has been recorded by the High Court while applying the split method nor we find there is one in the facts of the case.

In the case in hand, the deceased was a technically qualified person and people are generally health at that time and continue working even after retirement.   Therefore, the reduction is illegal.  The Supreme Court has awarded total compensation of Rs.33,03,000/-.

 Judgment dated 7.2.2025 of the Supreme Court of India in Civil Appeal No….of 2025 (Special Civil Petition [Civil] No.30398 of 2019) of Maya Singh and others   Vs.   The Oriental Insurance Co. Ltd and others

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