How the multiplier method works
Compensation for death in a motor accident is computed as loss of dependency + conventional heads. Loss of dependency is the deceased's annual income, increased for future prospects, reduced by the share they spent on themselves (personal expenses), and multiplied by an age-based multiplier. The framework is settled by Sarla Verma v DTC (2009) 6 SCC 121 and the Constitution Bench in National Insurance Co. v Pranay Sethi (2017) 16 SCC 680.
The Sarla Verma multiplier (age of the deceased)
| Age of deceased | Multiplier |
|---|---|
| 15–25 | 18 |
| 26–30 | 17 |
| 31–35 | 16 |
| 36–40 | 15 |
| 41–45 | 14 |
| 46–50 | 13 |
| 51–55 | 11 |
| 56–60 | 9 |
| 61–65 | 7 |
| 66–70 | 5 |
Future prospects (Pranay Sethi)
| Age band | Salaried / permanent | Self-employed / fixed wages |
|---|---|---|
| Below 40 | +50% | +40% |
| 40 to 50 | +30% | +25% |
| 50 to 60 | +15% | +10% |
| Above 60 | Not provided by Pranay Sethi (taken as 0%) | |
Conventional heads
Pranay Sethi fixed loss of estate at ₹15,000, loss of consortium at ₹40,000 and funeral expenses at ₹15,000 (2017), "to be enhanced at the rate of 10% every three years". No later judgment fixes a single 2026 table, so tribunals apply that rule to the 2017 base — this calculator shows the escalated figure and the number of three-year blocks used. Per Magma General v Nanu Ram (2018) 18 SCC 130, consortium is awarded to each eligible dependent (spouse, each child, each parent), not once.
What this estimate leaves out
The result is an estimate of the settled heads only. It excludes interest (typically 6–9% p.a. from the date of the petition, in the tribunal's discretion), any contributory negligence, income-tax computation on the actual income, and the facts a tribunal weighs in a real award. Enter income net of tax, as Pranay Sethi requires.
Frequently Asked Questions
How is motor accident death compensation calculated in India?
By the multiplier method settled in Sarla Verma v DTC (2009) and the Constitution Bench in National Insurance v Pranay Sethi (2017): take the deceased’s annual income, add future prospects, deduct personal and living expenses to get the multiplicand, multiply by the age-based multiplier for loss of dependency, then add the conventional heads (loss of estate, consortium and funeral expenses).
Which age decides the multiplier — the deceased or the claimant?
The age of the deceased. Sarla Verma fixes the multiplier at 18 for ages 15–25, reducing to 5 by ages 66–70. The same applies even where the claim is by parents of a bachelor.
What are future prospects and how much is added?
A percentage added to income to reflect likely career growth (Pranay Sethi). For a permanent/salaried job: 50% below 40, 30% for 40–50, 15% for 50–60. For self-employed or fixed wages: 40%, 25% and 10% for the same bands. Pranay Sethi prescribes nothing above 60.
How much is deducted for personal expenses?
Under Sarla Verma: for a married deceased, 1/3 where there are 2–3 dependants, 1/4 for 4–6, and 1/5 for more than 6. For a bachelor, 1/2 of the income is treated as personal expenses.
What are the conventional heads in 2026?
Pranay Sethi (2017) fixed loss of estate at ₹15,000, consortium at ₹40,000 and funeral expenses at ₹15,000, to be enhanced 10% every three years. There is no binding 2026 figure table, so tribunals apply the 10%/3-year rule to the base — this calculator shows that computed figure and lets you see the base. Consortium is awarded per eligible dependent (Magma General v Nanu Ram).