#Sarla Verma Case

Bombay High Court revises compensation norms in fatal motor accident cases, establishing Rs. 30,000 as notional annual income for deceased graduates assisting in family businesses and awarding Rs. 48,000 consortium per dependent. The ruling reduces personal expense deduction to 1/2 for bachelors with unmarried siblings, impacting future claims under the Motor Vehicles Act.

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.