Motor Vehicles Act, 1988
Compensation Framework and MACT
The Motor Vehicles Act, 1988 (amended significantly in 2019) provides two distinct routes for accident compensation: Section 163A (structured formula, no-fault liability, fixed schedule based on income and age) and Section 166 (fault-based claim, no statutory ceiling, requires proving negligence). Motor Accident Claims Tribunals (MACTs) are quasi-judicial bodies established under Section 165 to adjudicate compensation claims. The Supreme Court in Sarla Verma v. Delhi Transport Corporation (2009) laid down standardised guidelines for computing dependency compensation, including a multiplier method based on the victim's age. In National Insurance Company Ltd. v. Pranay Sethi (2017), a Constitution Bench further rationalised the compensation heads and fixed conventional amounts for non-pecuniary heads. The present ruling on homemaker income builds on this jurisprudential evolution.
- Section 163A: Structured formula, no-fault (strict liability); Schedule II provides compensation tables by income and age; ceiling applicable
- Section 166: Fault-based (negligence must be proved); no upper ceiling; structured through judicial multiplier method; allows full compensation
- MACT (Section 165): District-level quasi-judicial body; original jurisdiction for all road accident compensation claims; appeals lie to High Court
- Limitation period (Section 166(3)): 6 months from date of accident; extendable for sufficient cause
- Sarla Verma v. DTC (2009): SC standardised the multiplier method; established dependency ratio assumptions; precedent for all MACT calculations
- National Insurance v. Pranay Sethi (2017): Constitution Bench (5 judges); fixed Rs 15,000 as conventional amount for loss of consortium; Rs 15,000 for loss of estate; Rs 15,000 for funeral expenses — all subject to revision
- Multiplier method: Compensation = (income × dependency ratio) × multiplier (multiplier varies from 18 at age below 15 to 5 at age above 65)
● Tracked since February 11, 2026 · last seen June 11, 2026 · updates as the daily brief publishes