Case Law Analysis
|Chhattisgarh High Court
Motor Accident Compensation | Deduction for Personal Expenses Must Be Proportionate to Dependents, Not Fixed at 1/3 : Chhattisgarh HC Rejects Sarla Verma’s Rigid Formula
The Chhattisgarh High Court ruled that deductions for personal expenses in motor accident compensation must reflect the actual number of dependents, rejecting the insurer’s plea for a fixed one-third deduction under the Sarla Verma principle. The court held that a one-fourth deduction was justified where six dependents relied on the deceased’s income, emphasizing a case-specific approach over a rigid formula.