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● Motor Accident (MACT)

Compensation for Homemakers, Children and the Elderly: The Value of a 'Non-Earning' Life

📅 May 26, 2026
👤 Advocate Deepak Kumar
⏱️ 3 min read
📂 Motor Accident (MACT)
Does an accident claim shrink to nothing if the victim had no salary? No. The law assigns a notional income to homemakers, children and others — and recognises that their contribution has real value.
In plain words: families sometimes fear that because the person who died or was injured 'did not earn a salary', there is little to claim. The law firmly rejects that. A homemaker, a child and an elder all have a value the Tribunal must recognise.

Notional income: the key idea

Where a victim had no provable income, the Tribunal fixes a reasonable notional income and builds the claim on it. This is why a non-earning victim's family is never left without compensation.

Homemakers

The services of a homemaker — running the household, caring for children and elders, managing the family — have clear economic value, as the Supreme Court has repeatedly affirmed. Tribunals assign a homemaker a notional income (and the same future-prospects and multiplier logic applies), so a fatal or disabling injury to a homemaker yields a substantial, dignified award — not a token sum.

Children

For a child with no income, the Tribunal assigns a notional income reflecting the child's background and prospects, and awards compensation for the loss — including the conventional heads. The young age also means a higher multiplier in the calculation.

The elderly and retired

Older victims are assessed on pension, any continuing income, and the care and services they provided. Even without a salary, the loss of their support and companionship is compensable, with a multiplier appropriate to their age.

Heads beyond 'income'

  • Loss of consortium — spouse, children and parents can each claim.
  • Loss of care and guidance — especially where a parent or homemaker is lost.
  • Loss of estate and funeral expenses.

Frequently asked questions

How is a homemaker's income decided? By a reasonable estimate — often linked to minimum/notional wage levels and the value of the services provided.

Is a student's future career considered? The claim reflects the child's prospects; a fair notional income is assigned.

Can both parents claim for a deceased child? Yes — parents are dependants and can claim, including consortium.

How Vakil Help Desk helps

Vakil Help Desk ensures a non-earning victim's worth is fully recognised — arguing notional income, future prospects and all heads. If you have lost a homemaker, a child or an elder, we can help the Tribunal value that loss properly.

This article is for general legal awareness, not individual legal advice. Compensation depends on the facts, the evidence and the law as applied by the Tribunal, and figures are revised over time. Please consult a lawyer before acting.

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