- Death claims are worked out from income, future prospects, a deduction for personal expenses and an age-based multiplier.
- Conventional heads such as loss of estate, consortium and funeral expenses are added on top.
- Injury claims cover medical costs, lost income and loss of future earning capacity.
- For accidents from 1 April 2022, file within six months under Section 166(3).
On this page
How do you calculate compensation in MACT cases for death accident claims?
- Take the annual income of the person who died, from salary slips, tax returns or business records.
- Add future prospects. For a permanent job, add 50% of the income if the person was under 40, 30% of it between 40 and 50, and 15% of it between 50 and 60. For the self-employed or those on fixed wages, the additions are 40%, 25% and 10% of income for the same age bands.
- Deduct personal expenses. One-half for a bachelor; for a married person, one-third with two or three dependants, one-quarter with four to six, and one-fifth with more than six.
- Multiply the result by the multiplier for the age of the deceased.
- Add conventional heads.
Which multiplier applies to which age?
| Age of deceased | Multiplier |
|---|---|
| Up to 25 years | 18 |
| 26 to 30 years | 17 |
| 31 to 35 years | 16 |
| 36 to 40 years | 15 |
| 41 to 45 years | 14 |
| 46 to 50 years | 13 |
| 51 to 55 years | 11 |
| 56 to 60 years | 9 |
| 61 to 65 years | 7 |
| Above 65 years | 5 |
What are conventional heads?
In Pranay Sethi the Supreme Court fixed standard amounts for loss of estate, loss of consortium and funeral expenses, to be increased periodically. Later rulings recognised consortium for the spouse, the children and the parents separately. Courts apply the current enhanced figures.
Injury claims
- Medical expenses, past and future.
- Loss of income during treatment.
- Loss of future earning capacity, based on the functional disability certified by a medical board.
- Pain and suffering, and loss of amenities.
- Attendant and transport costs.
Motor accident claim petition: the steps
- FIR and accident report.
- Claim petition under Section 166, within six months.
- Notice to the owner, driver and insurer.
- Evidence of income, age, dependants and disability.
- Settlement or award, and deposit by the insurer.
For accidents from 1 April 2022, Section 164 also gives fixed no-fault compensation, and Section 161 covers hit-and-run victims.
What to do next
Collect income proof early; it is the single biggest factor in the amount. For filing in Mumbai, see the Mumbai MACT guide and MACT claims for help.
Adv. Swanand Pandit
Founder and Managing Partner, VIVS Legal. BLS, LL.B, LL.M, PGDBM, JAIIB.
