The Supreme Court has delivered a significant ruling on the computation of compensation in motor accident claim cases, holding that the 'split multiplier' method should not be applied. The Court clarified that compensation must be calculated solely on the basis of the deceased's income at the time of death.

“we hold that the income as on the date of death is to be taken to calculate the compensation…. In other words, split multiplier is a concept foreign to the Motor Vehicles Act, 1988 and is not to be used by the Tribunal and/or Courts in calculation of the compensation.” , the court held.

A bench of Justice Sanjay Karol and Justice Prashant Kumar Mishra set aside the Kerala High Court's decision, which applied the split multiplier method, resulting in a significant reduction in th

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