Impact of Interest Rate on Multiplier: As the interest rate is on the decline, the multiplier has to consequentially be raised. The highest multiplier has to be for the age group of 21 years to 25 years when an ordinary Indian citizen starts independently earning and the lowest at 60 to 70 years, which is the normal retirement age.
Section 163A begins with anon-obstante clause and provides for payment of compensation, as indicated in the Second Schedule, to the legal representatives of the deceased or injured, as the case may be.
The scheme for payment of compensation under the 1988 Act can be divided as under: i. Section 140 for no-fault liability in case of death or disablement; ii. Section 161: In case of hit-and-run motor accidents, where the identity of the vehicle cannot be ascertained, compensation amount is Rs. 25,000/- in case of death and Rs. 12,500/- in case of grievous hurt; iii. Section 163A: Special provisions as to payment of compensation on structured formula basis without establishing or proving any wrongful act or neglect or default of any person; iv. Section 168 for determination of compensation payable in pursuance of any right on the principle of fault liability.
Section 163A provides for fixed amount of general damage in case of death such as: i. Rs. 2,000/- for funeral expenses; ii. Rs. 5,000/- for loss of consortium if beneficiary is the spouse; iii. Rs. 2,400/- for loss of estate; iv. For medical expenses supported by the bills, voucher not exceeding Rs. 15,000/-.
Under Section 161(3), in cases in respect of the death of any person resulting from a hit-and-run motor accident, a fixed sum of Rs. 25,000/- is to be paid as compensation and in case of grievous hurt, the amount fixed is Rs.12,500/-.
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