Tamil Nadu State Transport Corporation ... vs S. Rajapriya And Two Others on 20 April, 2005
14. For calculating the yearly loss of dependency the starting point is the wages being earned by the deceased, less his personal and living expenses. This provides a basic figure. Thereafter, effect is given to the future prospects of the deceased, inflation and general price rise that erodes value and the purchasing power of money. To the multiplicant so calculated, multiplier is to be applied. The multiplier is decided and determined on the basis of length of dependency, which must be estimated. This has to be necessarily discounted for contingencies and uncertainties. Reference in this regard may be made to the judgments of the Supreme Court in the case of Sarla Dixit (supra), Managing Director TNSTC ltd. v. K.T. Bindu ; T.N. State Transport Corp. Ltd. v. S. Rajapriya ; New India Assurance co. ltd. v. Charlie (2005) 10 SCC 720 and United India Insurance co. ltd. v. Patrica Jean Mahajan etc.