How is compensation decided in a motor accident case?

How is the compensation amount decided in a motor accident case? My brother in-law was killed by a bike rider while walking near his home in Chennai a month ago. He was working in Technico Industries at a monthly salary of Rs. 55,000 and was 35 years of age.


He is survived by his wife and 2 sons aged 2 years and 6 years. What is the amount that my sister can claim as compensation from the biker and his insurance company?


Also, my sister is planning to settle in Delhi with me soon. Can we initiate / transfer the claim case to Delhi? In how much time will my sister get the claim amount?


Please help.



In refrence to your querry regarding the payment of compensation to the dependants of the deceased the following method is adopted by the courts as per the guidelines of the Hon'ble Supreme court under M.V.Act:


1. Loss of dependancy = (Income of deceased- IT) x 12 x 16 (multiplier at the age of 35 years) x 2/3 (taking the no. of dependants to be 3


2. In case the deceased was holding a permanant job with regular annual increments then 50% of the amount as calculated in para 1 will be added to the amount calculated in para 1 towards the future prospects for the purpose of awarding amount on account of dependancy.


3.The petitioners will also be awarded amount upto Rs. 2,25,000/- towards funeral expenses, loss of consortium, loss of estate, loss of love and affection etc. in addition to the loss of dependancy.


The claim may also be filed in Delhi in case the claimant/ petitioners prove that they are residents of Delhi at the time of filing the claim or any of the other parties are the residents of Delhi / or has it's office in Delhi.


While as per rough calculations and information shared by you the claim amount comes to around Rs. 1 Crore, we can help you ascertain the exact amount that may be claimed once you share the salary break-up of the deceased.


Kindly also note that the amount will increase further in case any dependant parent of the deceased is alive.


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