Date Of Filing Of Claim Petition Is Date For Fixing Rate Of Exchange For Computing Motor Accident Compensation: SC
The Supreme Court enhanced the motor accident compensation awarded by the MACT.
The Supreme Court reiterated that the date of filing of the accident claim petition is the proper date for fixing the rate of exchange for computing the motor accident compensation.
The Court enhanced the compensation awarded by the Motor Accident Claims Tribunal (MACT) to the claimants (Appellants) in a motor accident claim. The Court allowed the Appeal challenging the decision of the Telangana High Court which affirmed the findings of the MACT and the multiplier to be applied was reduced from 14 to 10 on account of the deceased earning in foreign currency.
A Bench of Justice Sanjay Karol and Justice Prashant Kumar Mishra referred to the decision in Jiju Kuruvila v. Kunjujamma Mohan (2013) wherein the Apex Court held that “the date of filing of the claim petition is the proper date for fixing the rate of exchange for computing compensation.”
AOR Harsh Singhal represented the Appellants.
Brief Facts
The Appellants (the husband and two daughters of the deceased) had filed a claim Petition before the MACT, seeking compensation. The deceased was a 43-year-old woman who was a U.S. resident and employed as a Software Engineer in the U.S.A. The claim stemmed from a road accident when a vehicle owned by the Andhra Pradesh State Road Transport Corporation (Respondent) collided with their car, resulting in her death.
The MACT awarded the compensation by applying a 14-multiplier and including future prospects at 30%. However, the High Court reduced the awarded amount by applying a 10-multiplier, stating that the deceased was earning in foreign currency.
Court’s Reasoning
The Supreme Court had to determine whether the claimants would be entitled to compensation at the exchange rate of currency as on the date of the accident or on the date of the filing of the Petition.
The Bench relied on its decision in National Insurance Co. Ltd. v. Pranay Sethi (2017), wherein it was expounded that “the multiplier for a person aged 43 must be 14. No exception is made for a person earning in foreign currency.”
Similarly, in DLF Ltd. v. Koncar Generators & Motors Ltd., the Court fixed the conversion rate which was the prevalent figure at the time of filing the claim petition.
Consequently, the Court ordered, “The Civil Appeal is allowed in the aforesaid terms. The impugned award…by…MACT…as modified vide the impugned order, stands further modified in terms of the above. Interest is to be paid as awarded by the Tribunal.”
Accordingly, the Supreme Court allowed the Appeal.
Cause Title: Shyam Prasad Nagalla & Ors. v. The Andhra Pradesh State Board Transport Corporation & Ors. (Neutral Citation: 2025 INSC 193)
