Page 348 - Motor Insurance Ebook IC 72

The Insurance Times

Q.3. Elaborate the procedure of computing the
Ans. compensation to road victims?
Over the years the judgments have calculated
compensation on the basis of present income to arrive
at loss of future income. In the case of Susamma
Thomas the concept of future prospects were taken
into account to arrive at future loss of income.

Here the present was increased by 100% to calculate
future loss of income however the percentile to be
adopted for future prospects have been inconsistently
applied in subsequent judgments. This issue was
revisited by the supermen court and some uniformity
and consistency cannot be applied for the future. This
landmark case is related to Sarla Verma Vs. Delhi
Transport Corporation in April 2009.

The multiplicand to be applied to calculate future prospects
would depend on the age of deceased thus an age below
40 would result in 50% loading of present income, age 40
to 50 a 30% loading and over 50 no loading.

AGE GROUP FUTURE INCOME
Below 40 Income + 50 % of income
40 to 50 Income + 30% of income
Over 50 Income

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