Motor accident compensation under Section 166: Sarla Verma governs multiplier choice, future prospects, and deductions, not rigid Second Schedule application.

Section 166 motor accident death claims are governed by the multiplier method as the normal rule, with the Second Schedule operating only as a guide and not as a rigid formula. The Court approved the Sarla Verma standardised table for selecting the multiplier to promote uniformity and consistency, and also accepted the standard rules on future prospects and deductions for personal and living expenses, subject to rare exceptional departure. For claims involving deceased victims up to 15 years of age, the corrected Second Schedule continues to apply so that claimants are not placed at a disadvantage.

---

---

Issues: Whether, in claims for compensation under Section 166 of the Motor Vehicles Act, 1988, the multiplier in the Second Schedule is to be applied as a binding rule, and what standards govern selection of multiplier, future prospects, and deduction for personal and living expenses.

Analysis: Section 163A creates a special structured-formula regime based on no-fault liability, while Section 166 governs fault-based claims and requires proof of negligence. The Second Schedule is relevant to Section 163A, but in Section 166 claims it functions only as a guide and cannot control the award mechanically. For death claims under Section 166, the Court approved the multiplier method as the normal rule and adopted the standardised table in Sarla Verma for selection of multiplier in order to secure uniformity and consistency. It further approved the standard additions towards future prospects and the standard deductions for personal and living expenses laid down in Sarla Verma, subject to exceptional departure in rare cases. For death claims where the deceased was upto 15 years of age, the Second Schedule as corrected in Sarla Verma would continue to govern so that claimants under Section 166 are not placed at a disadvantage.

Conclusion: In Section 166 death claims, the multiplier and allied heads are to be determined primarily in accordance with Sarla Verma, not by rigid application of the Second Schedule, save for cases involving victims upto 15 years of age.

---