Md Shadab Ansari (Law Student & Human Rights Activist....)     28 August 2010

# How to calculate the compensation u/s 163(A) of MV Act.

Dear Learned Experts.How to calculate the compensation u/s 163(A) of MV Act if the age of the deceased is 55 his salary is 16000/month, wife and parents are dead and has 4 children(2 son both are major and 2 daughter both married).Also explain the procedure of calculation with illustration with given figures...what is the difference between 163(A) and 166 of MV act.Thanks

YN Gaikwad (self)     29 August 2010

in 166 petitioner probably needs to prove the negligence of the respondent.

there are standard formulas, just check with the insurance company.

Tarun Thakur (advocate)     19 September 2010

the latest law beeen laid down by hon'ble supreme court in sarla verma case.. it is now adopted by the courts below..

it has ladi down the multipliers according to the age of the deceased. the multiplier of 9 is applied in the death cases of 55- 60 years

so while calculating the dependency, 16000 * 12 *  9 =  17, 28 , 000

deducting 1/3 for personal expenses  ...17, 28, 000 / 3  =  576000

amount  of compensation = 1728000 - 576000 =  11 52 000

but in your case , the dependecy has to be seen, whether the major sons and daughters were dependent upon the income of the deceased.. meet good lawyer in your city.. because the evidence part is most important.. as calculated above claimant  can get claim of 1152000 + certain other expenses like funeral expenses, medical expenses etc..