Supreme Court Reaffirms Uniform Multiplier Principle in Motor Accident Claims: Foreign Earnings No Ground for Reduction
Supreme Court Reaffirms Uniform Multiplier Principle in Motor Accident Claims: Foreign Earnings No Ground for Reduction Author: Abhishek Jat, Advocate Introduction In a significant judgment, the Supreme Court of India in Shyam Prasad Nagalla & Ors. v. The Andhra Pradesh State Road Transport Corporation & Ors. (Civil Appeal No. 2324 of 2025, arising out of SLP(C) No. 818/2025) has reaffirmed that the multiplier method used in motor accident compensation cases must be determined strictly based on the age of the deceased victim and cannot be reduced merely because the victim was earning in foreign currency. The Bench comprising Justice Sanjay Karol and Justice Prashant Kumar Mishra overturned the Telangana High Court’s decision, which had incorrectly reduced the multiplier from 14 to 10 on the basis that the deceased was earning in US dollars. The judgment underscores the principle of uniformity in applying multipliers and prevents courts from making arbitrary reducti...