Multiplier method governs fatal accident compensation; award reduced for inconsistent assessment of pecuniary loss.

Pecuniary loss in a fatal accident claim should be assessed by the multiplier method, taking the deceased's net contribution to the family after deducting personal living expenses and capitalising it by an appropriate multiplier. That approach is the established method for securing uniformity, certainty and just compensation, and departure from it is justified only in rare and exceptional cases. Future prospects may be reflected in the income assessment, but the compensation awarded on the basis used by the High Court was inconsistent with settled principles. The award was therefore reduced, while interest was left undisturbed.

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Issues: Whether compensation in a fatal accident claim should be assessed by the multiplier method and whether the award in the present case required reduction.

Analysis: The proper measure of damages in a fatal accident claim is the pecuniary loss suffered by the dependants, to be ascertained by determining the deceased's net contribution to the family after deducting personal living expenses and then capitalising that amount by an appropriate multiplier. The multiplier method is the logically sound and legally established approach for ensuring uniformity, certainty, and just compensation. Departure from that method is justified only in rare and exceptional cases. Applying these principles, the deceased's future prospects could be fairly reflected by a higher gross monthly income, but the High Court's award of compensation on the basis adopted by it was not in accord with settled principles.

Conclusion: The award was reduced and the compensation was fixed at Rs. 2,25,000, with interest left undisturbed.

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