Compensation for Road Accidents and "Split Multiplier" in cases under Motor Vehicles Act, 1988

Compensation for Road Accidents and "Split Multiplier" in cases under Motor Vehicles Act, 1988 

In a recent Judgment, Hon'ble Supreme Court has held that "age of the deceased is the criterion to be utilized for multiplier. It does not provide for any other possibilities. This does not even leave open the possibility of employment of split multiplier, whatsoever." "In other words, split multiplier is a concept foreign to the Motor Vehicles Act, 1988 and is not to be used by the Tribunal and/or Courts in calculation of the compensation." 

"Superannuation from service hardly qualifies as such an exceptional circumstance, which would justify the use of split multiplier. It is only a natural progression that a person who enters service must also exit at some point in time. The same cannot be taken as a negative circumstance against the deceased person or a person injured severely, leading to incapacitation or permanent disability."

Reference : Preetha Krishnan v. UIIC [2025] GCtR 1651 (SC)