MACT Calculation

Описание: The "Just Compensation" principle in India is governed by three landmark Supreme Court rulings that transformed motor accident law from a discretionary practice into a standardized mathematical science:

Sarla Verma v. Delhi Transport Corp (2009): The "Mother of all Judgments." It standardized the Multiplier Table and the percentages for Personal Expense Deductions.

National Insurance Co. Ltd. v. Pranay Sethi (2017): A Constitution Bench judgment that established the Future Prospects rule (compensating for the career growth the victim would have had) and fixed Conventional Heads. It also mandated a 10% increase in conventional heads every three years.

United India Insurance Co. Ltd. v. Satinder Kaur (2020): Clarified that "Consortium" (loss of company/love) is not a single lump sum but must be awarded to each dependent individually.

The Master Tables

1. The Multiplier Table (Sarla Verma)

This table determines how many "years" of income are awarded based on the victim's age.

Age Bracket Multiplier
6-15 yrs 15
16 - 25 years 18
26 - 30 years 17
31 - 35 years 16
36 - 40 years 15
41 - 45 years 14
46 - 50 years 13
51 - 55 years 11
56 - 60 years 9
61 - 65 years 7
66 years + 5

2. Future Prospects Table (Pranay Sethi)

Compensates for the potential rise in income the victim would have earned.

Employment Type Permanent Job Self-Employed

Below 40 Years 50% 40%
40 - 50 Years 30% 25%
50 - 60 Years 15% 10%

3. Personal Expense Deduction

The amount the victim would have spent on themselves (deducted from the total).

Status / Number of Dependents Deduction
Bachelor (regardless of parents). 50% (1/2)
Married (2 to 3 Dependents). 33.33% (1/3)
Married (4 to 6 Dependents). 25% (1/4)
Married (Over 6 Dependents). 20% (1/5)

4. Conventional Heads (Adjusted for 2026)

As per Pranay Sethi, these increase by 10% every 3 years. Base values from 2017 (₹15k/₹40k/₹15k) have been adjusted twice (2020, 2023).

Head Amount per Claimant (approx. 2026)

Loss of Consortium (Spousal/Parental/Filial)₹48,400 per dependent
Loss of Estate₹18,150
Funeral Expenses₹18,150


The Calculation Total Compensation = [(Annual Income + Future Prospects) - Personal Expenses] × Multiplier + Conventional Heads + Interest

Step-by-Step Case Study:
Name: John
Age: 40 years
Occupation: Self-Employed
Income: ₹10,000 per month
Family: Wife and 2 Children (Total 3 Dependents)
Step 1: Calculate Annual Income ₹10,000 × 12 months = ₹1,20,000 (One Lakh Twenty Thousand Rupees)
Step 2: Add Future Prospects
Since John is exactly 40 and self-employed, he falls into the 25% bracket.
(Note: If he were 39, he would have received 40%. At age 41, he remains at 25% until age 50.
₹1,20,000 + 25% (₹30,000) = ₹1,50,000

Step 3: Deduct Personal Expenses
John is married with 3 dependents. As per Sarla Verma, we deduct 1/3rd.₹1,50,000 - 1/3 (₹50,000) = ₹1,00,000 (Actual Loss of Dependency)

Step 4: Apply Multiplier
For age 40, the multiplier is 15.
₹1,00,000 × 15 = ₹15,00,000 (Fifteen Lakh Rupees)

Step 5: Add Conventional Heads
Consortium (3 members): ₹48,400 × 3 = ₹1,45,200
Loss of Estate: ₹18,150
Funeral Expenses: ₹18,150
Total Conventional Heads: ₹1,81,500
Final Total (Excluding Interest): ₹15,00,000 + ₹1,81,500 = ₹16,81,500 (Sixteen Lakh Eighty-One Thousand Five Hundred Rupees)
Key FAQ: Monthly vs. Annual Basis
A common question is whether calculating by month or year changes the result?
It does not.
Example using John’s monthly figures:
Monthly Income: ₹10,000
Future Prospects (25%): ₹2,500 (Total ₹12,500)
Personal Deduction (1/3): ₹4,166.67 (Remaining ₹8,333.33)
Apply Multiplier: ₹8,333.33 × 12 months × 15 years = ₹15,00,000

The result remains identical because the Multiplier is essentially a "year-factor." As long as you multiply the final monthly dependency by 12, the math remains perfectly balanced.

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