My relative died in an accident. What compensation can the family get?

What the Law Says

Compensation for accidental death in India depends on where and how the accident occurred. Two main laws apply: the Motor Vehicles Act, 1988 for road accidents, and the Workmen’s Compensation Act, 1923 for workplace deaths.

Under the Motor Vehicles Act, 1988, if the death results from a motor vehicle accident, legal heirs can file a claim before the Motor Accidents Claims Tribunal (MACT). The compensation is calculated considering the deceased’s age, income, number of dependents, and future prospects — not fixed, but courts often award ₹5 lakh or more in cases of proven negligence.

The Workmen’s Compensation Act, 1923 applies when the death occurs during employment. It mandates payment of compensation equal to 50% of the deceased’s monthly wages multiplied by a relevant factor (based on age), or ₹1,20,000 — whichever is higher. However, for fatal injuries, Section 4(1) states: 'the employer shall be liable to pay... compensation which shall be... an amount equal to fifty per cent of the monthly wages of the deceased multiplied by the relevant factor, or an amount of one lakh and twenty thousand rupees, whichever is more.'

Statutory Text

the employer shall be liable to pay... compensation which shall be... an amount equal to fifty per cent of the monthly wages of the deceased multiplied by the relevant factor, or an amount of one lakh and twenty thousand rupees, whichever is more.

— Workmen’s Compensation Act, 1923, s. 4(1) — Liability for compensation

Sources