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Overview of the Act
Payment of compensation in case of death/grievous hurt
Payment of lump-sum compensation payable in case of death/permanent disablement
(i) Rs. 5 lacs in case of death
(ii) Rs. 2.5 lacs in case of grievous hurt
Payment of ‘just’ compensation in case of death or permanent disablement
Steps involved in determination of “just compensation”
(i) Calculate the income of the deceased with future prospects
(ii) Deduction for personal and living expenses of the deceased
(iii) Selection of multiplier
(iv) Computation of compensation
Income of the deceased with future prospects
(i) Age below 40 years – Rs. 1,50,000 (Rs. 1,00,000 + 50% of 1,00,000)
(ii) Age between 40-50 years – Rs. 1,30,000 (Rs. 1,00,000 + 30% of 1,00,000)
(iii) Age between 50-60 years – Rs. 1,15,000 (Rs. 1,00,000 + 15% of 1,00,000)
(iv) Age above 60 years – Rs. 1,00,000 (Rs. 1,00,000 + Nil)
(i) Age below 40 years – Rs. 1,40,000 (Rs. 1,00,000 + 40% of 1,00,000)
(ii) Age between 40-50 years – Rs. 1,25,000 (Rs. 1,00,000 + 25% of 1,00,000)
(iii) Age between 50-60 years – Rs. 1,10,000 (Rs. 1,00,000 + 10% of 1,00,000)
Deduction of personal and living expenses
(i) Deceased being a married person, deduction towards his personal and living expenses would be as under:
1/3 rd – where deceased had 2-3 dependant family members
1/4 th – where deceased had 4-6 dependant family members
1/5th – where deceased had more than six dependant family members
(ii) Deceased being a bachelor, deduction towards his personal and living expenses would be as under:
1/2 – where deceased is survived by parents and siblings, mother being only dependant of deceased
1/3 – where deceased has large number of dependant young non-earning siblings
– this part may also vary depending on facts and circumstances of each case
Multiplier to be adopted
Age of the deceased Multiplier
Up to 15 years 15
15 to 20 years 18
21 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 09
61 to 65 years 07
Above 65 years 05
Other components
In addition to calculating compensation in the manner stated above, following amounts shall also be paid to the family of victim in case of death:
Important judgements
In this case the Supreme Court worked out the table of multiplier taking into account the judgments passed in various cases
In this case, the Supreme Court approved the parameters of determining the compensation in the judgment of Sarla Verma
In this case, the Supreme Court though approved the parameters of determining the compensation in the judgment of Sarla Verma but made few more addition
In this case the court held that the age of deceased, and not of the dependent, is relevant for adopting the multiplier
Annual income (6006 X 12) = Rs. 72,072
Deduction towards personal & Living Expenses (1/5) = Rs. 57,658 (72,072–14,414)
Multiplier based on age of 38 years = 15
Amount of compensation = Rs. 8,64,780 (Rs. 57,658 X 15)
Addition to be made on other factors:
Loss of Estate = Rs. 5,000
loss of consortium = Rs. 10,000
Funeral Expenses = Rs. 5,000 Rs. 20,000
Compensation in case of permanent disability
Amazing information you have shared in this article. This article helps me a lot and also I found some unknown information in this article. Thank you for the information.
How long will a MACT death claim take. Mine has taken over 10years in west Bengal.
2-5 year in rajasthan
What is the actual calculation if only wife dependent in case of death of her husbandin MAC claim
In what ratio the amount will be distributed if dependents are spouse , minor daughter , unmarried sister and parents .Is any impact if widow gets remarried before the settlement of amount .
Good ptesentations
Not posted recent judgements on basic of profession and the SC judgements . Good highly helpful your presentation congrstulated
Vasiyat grahita ke kya adhikar hai m v act accident clame me