Motor Accident Claim Details
Used to determine Sarla Verma multiplier (5 to 18)
Salary slip / ITR / established wages
2-3 dep = 1/3 ded | 4-6 dep = 1/4 ded | >6 dep = 1/5 ded
Fatal Accident Claim Determination
Principal: ₹49,81,500 + Interest (@7.5%): ₹7,47,225
₹48,00,000
Annual: ₹3,00,000 × 16+50%
+₹1,50,000 /year₹1,81,500
Consortium: ₹1,45,200Detailed Statutory Breakdown
Statutory Disclaimer: This computation is an indicative estimate under the Motor Vehicles Act, 1988 and Supreme Court precedents (Sarla Verma, Pranay Sethi, Raj Kumar). Final compensation is subject to documentary evidence and judicial award by the Motor Accident Claims Tribunal (MACT).
6 Core Principles of MACT Compensation
Standardized judicial computation rules formulated by the Supreme Court of India.
1. Sarla Verma Multiplier Framework
The Supreme Court in Sarla Verma v. DTC (2009) 6 SCC 121 standardized age-based multipliers ranging from 18 (ages 15-25) down to 5 (age > 65), reaffirmed by the 5-Judge Constitution Bench in Pranay Sethi.
2. Future Prospects on Income (Pranay Sethi)
Under Pranay Sethi (2017) 16 SCC 680, permanent salaried victims receive +50% (<40 yrs), +30% (40-50 yrs), and +15% (50-60 yrs), while self-employed/fixed wage victims receive +40% (<40 yrs), +25% (40-50 yrs), and +10% (50-60 yrs).
3. Personal Living Expense Deductions
In fatal claims, living expenses are deducted based on family size: Bachelor (1/2), 1 dependant (1/2), 2-3 dependants (1/3), 4-6 dependants (1/4), and >6 dependants (1/5). In injury claims, no personal deduction is made.
4. Tri-partite Consortium (Magma & Satinder Kaur)
Under Magma (2018) and Satinder Kaur (2021), consortium is granted under 3 heads: Spousal, Parental, and Filial consortium at ₹40,000 base (₹48,400 inflation-indexed) to each qualifying dependent.
5. Physical vs Functional Disability (Raj Kumar)
Under Raj Kumar v. Ajay Kumar (2011) 1 SCC 343, certified physical disability does not automatically equal loss of earning capacity. Compensation is strictly assessed on the functional impact upon the claimant's specific vocation.
6. Discretionary Interest under Section 171
Section 171 of the Motor Vehicles Act, 1988 empowers the Claims Tribunal to award simple interest from the date of filing the claim petition to realization (commonly 6% to 9% per annum).
Authoritative Precedents Governing Computation
Sarla Verma & Ors. v. Delhi Transport Corporation
(2009) 6 SCC 121 (Supreme Court)Standardized the age-based Multiplier Table (18 to 5) and proportional personal expense deductions based on dependency.
National Insurance Co. Ltd. v. Pranay Sethi & Ors.
(2017) 16 SCC 680 (5-Judge Constitution Bench)Authoritatively laid down Future Prospects percentages and standardized Conventional Heads with 10% triennial escalation.
Magma General Insurance Co. Ltd. v. Nanu Ram alias Chuhru Ram
(2018) 18 SCC 130 (Supreme Court)Recognized and expanded Consortium under three distinct statutory heads: Spousal, Parental, and Filial Consortium.
United India Insurance Co. Ltd. v. Satinder Kaur alias Satwinder Kaur
(2021) 11 SCC 780 (Supreme Court)Reaffirmed Magma consortium and clarified that no separate compensation is permissible under 'loss of love and affection'.
Raj Kumar v. Ajay Kumar & Anr.
(2011) 1 SCC 343 (Supreme Court)Three-step assessment for personal injury and permanent disability; compensation computed strictly on functional earning impairment.
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