Blog Details

In India, road accidents are a major and growing public health problem. Every year around 5 lac accidents occur in which 5 lac (3.5 lac) people get injured and 1.5 lac people die. Most of the people who died in accidents are between the age group of 18-35. In this age group families are most dependent on them and sometimes the main earning member dies due to an accident. Families suffer a lot, financially or mentally. 

In India, if a road crash resulted in accidental death, injury, disablement, is eligible for compensation received by the Motor Accident Claims Tribunal(MACT) established under the Motor Vehicle Act. Due to a lack of awareness about this law they do not claim any compensation. Sometimes families settle with the small amount paid by the vehicle owner from which the accident happened. 

MACT was created to provide a faster remedy to the victim of a motor accident. MACT is a civil court that allows victims to be heard. MACT claim lies with the High Court. There is no time limit for filing a claim but the tribunal can ask for an explanation for the delay. Section 166 of the Motor Vehicle Act says that compensation can be claimed by the person who gets injured, owner of the damaged vehicle or property, legal representative of the person who died in the road accident. Petitions of the claim can be filed in the area where the accident occurred, where the claimant person resides, and where the defendant resides. In all this area tribunal have jurisdiction. These tribunals are under the supervision of the High Court of different states. 

Police have to file the Accident Information Report and the SHO of the jurisdiction where the accident occurred has to submit the Accident Information Report to the MACT within 30 days from the recording FIR and advanced copy to the insurance company. Police also have to submit FIR, post mortem report, vehicle fitness, permit and all other relevant documents which assess compensation to the claims tribunal.

Following documents should accompany the Claim petition:-

1. Copy of the FIR registered in connection with a said accident if any. 

2. Copy of the MLC/Post Mortem Report/Death Report as the case may be. 

3. The documents of the identity of the claimants and the deceased in a death case.

4. Original bills of expenses incurred on the treatment along with treatment record. 

5. Documents of the educational qualifications of the deceased, if any. 

6. Disability Certificate, if already obtained, in an injury case. 

7. The proof of income of the deceased/injured. 

8. Documents about the age of the victim.

9. The cover note of the third party insurance policy, if any. 

10. An affidavit detailing the relationship of the claimants with the deceased.

The first party in any accident claim petition would be the driver, the second party would be the car owner, and the third party would be the insurance company. The Central Government modified the quantum of compensation for third-party fatal accidents and injury claims under the Second Schedule of the Motor Vehicles Act 1988 (MV Act) with a notification on May 22, 2018. These compensation claims are evaluated on a "no-fault responsibility basis," as defined by Section 163A of the Motor Vehicle Act.

It is mandatory by the legislature to use vehicles in a public place with any third party insurance. Third-party insurance is mandatory for all motor vehicles. Law suggested that the driver must carry at least a minimum bodily injury liability and property damage coverage. A person who is driving the vehicle should not have been under the influence of alcohol or any other drug and the vehicle were not using for an unlawful purpose nor it was using the vehicle for any purpose other than what it has been intended for which will be the part of insurance terms such as using the private car as a commercial vehicle. In all these cases the insurance company will not be liable. In case of an accident occurred by an underage driver, the insurance company does not provide any compensation. Liabilities lie with the child’s legal parent or guardian.  

In the case of no-fault liability of a Motor accident when there is no fault on either side but death and disablement of any person has resulted from the accident. In that case, the owner of the vehicle or owners of the vehicle will be liable and the victim doesn't have to prove the wrongful act or negligence of either side. 

Conclusion 

Accident claims legislation is rapidly evolving, necessitating modifications to meet the needs of the victim, but at the same time, the interests of those disbursing compensation, namely insurance companies, must be considered. Imposing responsibility to pay cannot be legalized unless they have the opportunity to dispute it. Section 170 allows for permission to be sought, however, this provision can be abused by colluding owners and claimants. Currently, due to the rising amount of compensations, about 10% to 15% or even more instances brought to Claim Tribunals are false or other incidents have been changed to road accidents with the police authorities' knowledge. While raising the burden on insurance companies, it is important that they be given the right to a proper challenge in order to reduce false instances and also the amount.

The moment has come to pass laws allowing for the payment of fixed compensations, such as in the case of rail or air travel. A person killed in a rail accident cannot be compensated more than Rs. 4 lakh, whereas a person killed in a road accident can be compensated up to Rs. 4 crores. Compensation based on the vehicle is not acceptable, and a structural foundation recompense formula without regard to income or age should be implemented so that everyone, regardless of wealth or poverty, may get compensation for their lives.

A scheme should be developed in collaboration with state police authorities and insurance companies, under which the insurance company must be notified quickly when an accident occurs so those appropriate investigations may be conducted. When the claim petition is submitted, the insurance company enters the picture, and proof can be gathered to turn the non-accident into an accident, as well as on the quantum. The goal of the law is to give fair compensation rather than excessive pay. This is something that should be remembered at all times.