If someone is injured or killed in a road accident in India, compensation is claimed through a Motor Accident Claims Tribunal (MACT) — and there are three routes to it, paying very different amounts. The no-fault route pays a fixed ₹5 lakh for a death or ₹2.5 lakh for a grievous injury without proving anyone was at fault. The fault-based route, where you show the other driver was negligent, pays actual loss — often many times more. And where the vehicle is untraced, a government scheme pays ₹2 lakh (death) or ₹50,000 (grievous hurt). This guide explains what the MACT is, which route fits your case, how compensation is calculated, and how to file — with the current figures and the deadlines that matter.
What the MACT is, and what it decides
A Motor Accident Claims Tribunal is a special forum set up under Section 165 of the Motor Vehicles Act, 1988 to decide claims for compensation arising from the use of motor vehicles — for death, bodily injury, or damage to property. It is not an ordinary civil court; it follows a simpler, victim-friendly procedure. A claim can be filed where the accident occurred, where the claimant lives or works, or where the respondent (the driver, owner or insurer) resides. Because motor third-party insurance is compulsory, the vehicle’s insurer is almost always joined and ends up paying the award — which is why an accident victim rarely depends on the driver’s personal means.
Three routes to compensation — which fits your case
| Route | What you must show | What it pays | Best when |
|---|---|---|---|
| No-fault (Section 164) | Only that the death/grievous hurt arose from the use of a motor vehicle — not that anyone was at fault | Fixed: ₹5,00,000 (death) · ₹2,50,000 (grievous hurt) | You want a quicker, certain payment, or fault is hard to prove |
| Fault-based (Section 166) | That the accident was caused by the other party’s negligence | Actual computed loss — commonly far higher than the fixed sums | The other driver was clearly negligent and the true loss is large |
| Hit-and-run scheme (Section 161) | That the vehicle that caused it is untraced | ₹2,00,000 (death) · ₹50,000 (grievous hurt), from the Motor Vehicle Accident Fund | The offending vehicle was never identified |
The fixed ₹5 lakh / ₹2.5 lakh figures come from Section 164, introduced by the Motor Vehicles (Amendment) Act, 2019, which replaced the older no-fault provisions (the repealed Sections 140–144) and the structured-formula Section 163A. The hit-and-run amounts come from the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022, in force from 1 April 2022.
Who can claim, and against whom
Under Section 166, an application can be made by the injured person; by the owner of damaged property; or, where the victim has died, by all or any of the legal representatives of the deceased. The claim is made against the driver, the owner and the insurer of the offending vehicle together, so the insurer’s liability is fixed in the same proceeding. There is no court fee barrier of the kind ordinary suits carry, and the tribunal can even treat a police Accident Information Report as an application on the victim’s behalf.
How fault-based compensation is calculated
For a fault-based death claim, tribunals follow the framework the Supreme Court settled in National Insurance Co. Ltd. v. Pranay Sethi (2017) and Sarla Verma v. DTC (2009). Compensation is built from the loss of dependency plus fixed conventional heads:
- Annual income, increased for future prospects (a percentage uplift that is higher for younger earners), then reduced by the deceased’s personal and living expenses (a fraction that depends on the number of dependants).
- Multiplied by an age-based multiplier from the Sarla Verma table (highest for the young, tapering with age) to give the loss of dependency.
- Plus conventional heads — loss of estate, loss of consortium (spousal, parental or filial) and funeral expenses — which the courts enhance periodically.
Illustrative example. Take a self-employed person aged 35 earning ₹30,000 a month (₹3.6 lakh a year), with three dependants:
| Step | Working | Amount |
|---|---|---|
| Annual income | ₹30,000 × 12 | ₹3,60,000 |
| + Future prospects (age < 40) | +40% | ₹5,04,000 |
| − Personal expenses (3 dependants) | deduct one-fourth | ₹3,78,000 |
| × Age multiplier (age 35) | × 16 | ₹60,48,000 |
| + Conventional heads | loss of estate, consortium, funeral | ≈ ₹90,000+ |
| Indicative award | ≈ ₹61 lakh |
For an injury claim, compensation covers medical expenses, loss of income during recovery, any loss of future earning capacity from a disability, and pain and suffering — proved by hospital records, bills and an income/disability certificate.
How to file a MACT claim — step by step
- Lodge an FIR and get the accident recorded by the police; the charge sheet and Accident Information Report support the claim.
- Gather evidence: the FIR, medical records and bills, post-mortem report (in a death case), income proof, and details of the offending vehicle and its insurer.
- File the claim petition before the MACT with jurisdiction — where the accident happened, or where you or the respondent live.
- Mind the deadline. Since 1 April 2022, Section 166(3) requires the application to be filed within six months of the accident. This limit has been the subject of legal challenge, but the safe course is to file promptly.
- The tribunal hears both sides — you, and the driver/owner/insurer — and passes an award under Section 168, usually with interest from the date of the application.
After the award — payment and appeals
The insurer pays the award, typically with interest. Either side may appeal to the High Court under Section 173 within 90 days (extendable for sufficient cause), but no appeal lies where the amount in dispute is less than ₹1 lakh. An insurer or owner appealing an award must first deposit ₹25,000 or half the awarded amount, whichever is less. Because the third-party insurer stands behind the award, a genuine claimant is protected even if the driver or owner cannot pay — the same principle that underpins compulsory third-party insurance.
Frequently Asked Questions — Motor Accident Compensation & the MACT
How much compensation is paid for a motor accident death in India?
It depends on the route. The no-fault route under Section 164 pays a fixed ₹5 lakh. A fault-based claim under Section 166, where you prove the other driver’s negligence, pays the actual computed loss and is often many times higher. Where the vehicle is untraced, the hit-and-run scheme pays ₹2 lakh.
What is the Motor Accident Claims Tribunal (MACT)?
It is a special tribunal set up under Section 165 of the Motor Vehicles Act, 1988 to decide compensation claims for death, injury or property damage caused by motor vehicles. It follows a simpler, victim-friendly procedure than an ordinary civil court.
Is there a time limit to file a MACT claim?
Yes. Since 1 April 2022, Section 166(3) requires a claim to be filed within six months of the accident. The provision has been challenged in court, but the safe course is to file as promptly as possible.
Do I have to prove fault to get compensation?
Not for the no-fault route under Section 164 (fixed ₹5 lakh / ₹2.5 lakh) or the hit-and-run scheme. You do have to establish the other party’s negligence for the higher fault-based claim under Section 166.
Who can file a claim and against whom?
The injured person, or the legal representatives of a deceased victim, can file — against the driver, the owner and the insurer of the offending vehicle together, so the insurer’s liability is decided in the same case.
How is fault-based compensation calculated?
By the multiplier method: annual income increased for future prospects and reduced by personal expenses, multiplied by an age-based multiplier, plus conventional heads such as loss of estate, consortium and funeral expenses — following the Supreme Court in Pranay Sethi (2017) and Sarla Verma (2009).
Can I appeal a MACT award?
Yes, to the High Court under Section 173 within 90 days, but only if the amount in dispute is ₹1 lakh or more. A late appeal can be admitted if there is sufficient cause for the delay.
Sources & official references
- Law: the Motor Vehicles Act, 1988 — Section 165 (Claims Tribunals), Section 166 (application and the six-month limitation in s.166(3)), Section 168 (award), Section 164 (fixed no-fault compensation of ₹5 lakh / ₹2.5 lakh), Section 161 (hit-and-run) and Section 173 (appeals), via India Code.
- Amendment: the Motor Vehicles (Amendment) Act, 2019 introduced Section 164 and repealed the older no-fault provisions (Sections 140–144) and Section 163A.
- Scheme: the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022 (Ministry of Road Transport & Highways) — ₹2 lakh (death) / ₹50,000 (grievous hurt) from the Motor Vehicle Accident Fund, in force from 1 April 2022.
- Supreme Court judgments: National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680 (conventional heads and future prospects) and Sarla Verma v. DTC, (2009) 6 SCC 121 (the age-based multiplier table).
