#Sarla Verma

The Supreme Court upheld a multiplier of 16 for the parents of a 33-year-old bachelor under the Sarla Verma matrix, and raised the pillion rider's functional disability to 100% based on a Medical Board report confirming total permanent incapacity from cortical blindness, pelvic fractures, and a permanent colostomy. The ₹3.77 crore award with 7.5% interest sets a precedent for catastrophic injury compensation.

The Madhya Pradesh High Court, Gwalior Bench, ruled that deceased bachelors must be subject to a 50% deduction for personal expenses under Sarla Verma guidelines, reducing compensation from Rs. 16.4 lakh to Rs. 12.73 lakh. This holding reinforces the mandatory application of dependency ratios in motor accident claims, impacting insurers and claimants alike.

The Jharkhand High Court has held that consortium compensation under the Sarla Verma judgment must be awarded at Rs. 48,000 per claimant - not as a lump sum - overturning a Tribunal’s aggregate award of Rs. 30,000. This reinforces that insurers and claimants must treat each dependent’s loss of consortium as a distinct entitlement under the Motor Vehicles Act, significantly raising minimum compensation standards in fatal accident claims.

NGT holds that compensation for firecracker factory blast victims must follow Sarla Verma framework, with remaining dues to be paid promptly and disputes referable to civil courts.

Madhya Pradesh High Court holds that income tax deduction is not mandatory in motor accident compensation when deceased's income is on the borderline and statutory allowances offset tax liability.