No More Split Multiplier : Apex Court Reinforces Guidelines in Accident Claims

Judgment dated 7.11.2025 of the Supreme Court in SLP (Civil) No.9753-56 of 2025 of Preetha Krishnan and others   vs.  The United India Insurance Co. Ltd and others

The bus had driven in rash manner collided with the car of the deceased and died, who was working Assistant Engineer in the PWD.  The appellants filed claim petition for Rs.60 lakhs.

The High Court reduced the compensation by applying split multiplier that the deceased would have shortly superannuated from service.   Thereafter, there would have been 50% reduction in his monthly take-home pay.

The point of challenge was whether the High Court erred in applying split multiplier without considering the possibility of the deceased continuing to earn even after retirement.

HELD that there are divergent views of the High Courts on the split multiplier in respect of the persons who were employed and had definite retirement age, as per the cases given in the table of judgments in para 13 of the judgment.  It has been held time and again that split multiplier is not to be adopted as a matter of course and to be used only in exceptional circumstances to be recorded by the Court.

Spilt Multiplier is hardly justified as an exceptional circumstance in case of superannuation of deceased from service.  It is only a natural progression that a person who enters service must also exit at some point of time.  The same cannot be said to be a negative circumstance against the deceased or injured.