ROAD ACCIDENT COMPENSATION CLAIM

Introduction

Each year many persons lose their lives in road accidents. Sometimes it is because of their fault and the other times, they have to pay for the movements of the others.

The Motor Vehicles Act, of 1988 is the remedy available to a person who suffers because of the wrong movements of others. According to this Act, all criminals are held liable in the form of punishment, they have to compensate the victim. 

This Act objects to preventing motor vehicle accidents, and if in case it happens, it ensures that the victim gets justice and the person who caused the accident gets punished.

THE MOTOR VEHICLES ACT, 1988

Indian Parliament, in the year 1988 passed the Motor Vehicles Act. The Act regulates
regulates almost all aspects of road transport vehicles.
The Act came into force on 1 July 1989 and has provisions for traffic regulations, vehicle insurance, registration of motor vehicles, control permits, and penalties.

To make roads safer, the Government of India in consultation with state transport ministers came up with this Motor Vehicles (Amendment) Bill to make changes to the Motor Vehicles Act, 1988.

Features of the Motor Vehicles Act, 1988

  • The act covers all the aspects of road transport vehicles. 
  • It extends to the whole of India.
  • It is legislation that ensures the public welfare after they meet with an accident.
  • Chapter II of the Act deals with the ‘Licensing of Driver of Motor Vehicles’. 
  • Chapter III deals with the ‘Licensing of Conductors of State Carriages’.
  • Chapter IV of the Act covers ‘ the Registration of Motor Vehicles.
  • Chapter V of the Act covers ‘ the Control of Transport Vehicles.
  • Chapter VI of the Act covers the Special provisions Relating to State Transport undertakings
  • Chapter VII of the Act deals with the Construction, equipment, and maintenance of motor Vehicles.
  • Chapter VIII of the Control of Traffic
  • Chapter IX of the Act Motor Vehicles Temporarily Leaving or Visiting India
  • Chapter X of the Act Liability without Fault in certain cases’
  • Chapter XI of the Act Insurance of Motor Vehicles Against Third Party Risks
  • Chapter XII of the Act Claims Tribunals.
  • Chapter XIII of the Act Offences, Penalties, and procedure.

Basic Rules

Section – 3 Necessity for driving license

(1) No person shall drive a motor vehicle in any public place unless he holds an effective driving licence issued to him authorising him to drive the vehicle; 
and no person shall so drive a transport vehicle [other than 1[a motor 
cab or motor cycle] hired for his own use or rented under any scheme 
made under sub-section (2) of section 75] unless his driving licence 
specifically entitles him so to do.—

(a) No person shall drive a motor vehicle in any public place unless he holds an effective driving licence issued to him authorising him to drive the vehicle;
 and no person shall so drive a transport vehicle [other than 1[a motor 
cab or motor cycle] hired for his own use or rented under any scheme 
made under sub-section 
(2) of section 75] unless his driving licence specifically entitles him so to do."

(2) The conditions subject to which sub-section (1) shall not apply to a person receiving instructions in driving a motor vehicle shall be such as 
may be prescribed by the Central Government.

No person can drive a vehicle without any authorized driving license, and without any driving license authorizing a person to drive a transport he cannot drive such a vehicle.

Section – 4 Age limit in connection with driving motor vehicles.—

(1) No person under the age of eighteen years shall drive a motor vehicle in any public place: Provided that 1[a motor cycle with engine capacity not exceeding 
50cc] may be driven in a public place by a person after attaining 
the age of sixteen years.

(2) Subject to the provisions of section 18, no person under the age of 
twenty years shall drive a transport vehicle in any public place.

(3) No learner’s licence or driving licence shall be issued to any person
 to drive a vehicle of the class to which he has made an application 
unless he is eligible to drive that class of vehicle under this section.

It states that unless a person attains the age of majority (18 years) he cannot drive a vehicle.

Section 35 to 65

From Section 35 to 65 procedure for the registration of the vehicle has been laid down and it has been made mandatory to get one’s vehicle registered.

Section 145 to 164

It is necessary for the vehicle owner to get third-party insurance 

damage car in parking area with other cars
Photo by Aleksandr Neplokhov

Motor Accident Claim Tribunal 

Motor Accidents Claims Tribunal has been created by the Motor Vehicles Act, 1988. It has been constituted to provide speedy remedy to the victims of accidents by motor vehicles. The Tribunals take away the jurisdiction of Civil Courts in matters which concerns the Motor Accidents Claims Tribunal.

Appeals from Claims Tribunal lie with High Courts. The appeal is limited by time and has to be filed in the High Court within 90 days from the date of award of the Claims Tribunal. ‘The High Court may entertain the appeal after the expiry of the said period of 90 days if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.’ (Section-173).

However, there is no time limit for filing motor vehicle accidents claim. But an unusual delay will demand an explanation by the Tribunal.

As per Section 165(1) of the Act, a State Government can, by issuing a notice in the Official Gazette, can establish a new Motor Accident Claims Tribunal in the area specified in the notice. Section 165(2) gives liberty to the State Government to appoint as many numbers of members as it deems fit. But among the members appointed one has to be the Chairman.

Section 165 (3)  states that for a person to become a member of the Claims Tribunal following conditions must be satisfied :

  • He is or should have been a judge of a High Court 
  • He is or should have been a judge of a District Court
  • He is qualified enough to be appointed as a judge of a District Court or a High Court

As stated under Section 165(4) if there are two or more Claims Tribunal in an area then the Government based upon order, either general or special, can distribute work amongst them. 

Section 166

Section 166 of the Motor Vehicles Act, 1988 compensation can be claimed 

  • By the person who has sustained an injury
  • By the owner of the damaged property;
  • By all or any legal representative of the deceased who died in the accident
  • By the duly authorized agent of the injured person or all or any of the legal representatives of the deceased who died in the accident
The Motor Vehicles Act,1988 is comprehensive legislation with the purpose of 
enhancing road safety. It also serves the purpose of welfare legislation by providing 
for compensation in case of loss of life or limb because of accidents by motor vehicles.
Section-2(30) of the Act defines who is the ‘owner’. “Owner” is; a person in 
whose name a motor vehicle stands registered, and where such person is a minor, 
the guardian of such minor, and in relation to a motor vehicle which is the
subject of a hire-purchase, agreement, or an agreement of lease or an 
agreement of hypothecation, the person in possession of the vehicle under that agreement.

Compensation claim

Claiming the Compensation after a long unnatural period might result in raising doubts in the minds of the Tribunal and there is no prescribed limit within which the claim application has to be filed.

No prescribed limit to applying for compensation it should be claimed within a reasonable time.

Section 165 (1) Claims Tribunal can entitle compensation to the claimant in the following:-

  • When the accident involves death or bodily injury to a person 
  • When the accident results in the loss of any property of a third party
  • When such accidents arise out of the use of motor vehicles 

Compensation can be filed where the claimant resides, where the owner of the vehicle resides, and where the accident took place.

Types of claims 

  • No-Fault Liability
  • Hit and Run
  • Structured Formula Basis

No-Fault Liability -Section 140

Liability to pay compensation in certain cases on the principle of no fault.—

(1) Where death or permanent disablement of any person has resulted from an 
accident arising out of the use of a motor vehicle or motor vehicles, the 
owner of the vehicle shall, or, as the case may be, the owners of the vehicles shall, jointly and severally, be liable to pay compensation in respect 
of such death or disablement in accordance with the provisions of this section.

(2) The amount of compensation which shall be payable under sub-section 
(1) in respect of the death of any person shall be a fixed sum of 
1[fifty thousand rupees] and the amount of compensation payable under 
that sub-section in respect of the permanent disablement of any person 
shall be a fixed sum of 2[twenty-five thousand rupees].

(3) In any claim for compensation under sub-section (1), the claimant shall 
not be required to plead and establish that the death or permanent 
disablement in respect of which the claim has been made was due to any 
wrongful act, neglect or default of the owner or owners of the vehicle 
or vehicles concerned or of any other person.

(4) A claim for compensation under sub-section (1) shall not be defeated 
by reason of any wrongful act, neglect or default of the person in 
respect of whose death or permanent disablement the claim has been made nor shall the quantum of compensation recoverable in respect of such death or 
permanent disablement be reduced on the basis of the share of such person in the responsibility for such death or permanent disablement. 
3[(5) Notwithstanding anything contained in sub-section (2) regarding 
death or bodily injury to any person, for which the owner of the 
vehicle is liable to give compensation for relief, he is also liable to pay compensation under any other law for the time being in force: Provided that the amount of such compensation to be given under any other law shall be 
reduced from the amount of compensation payable under this section or 
under section 163A.]

This liability is dealt with under Section 140 of the Act. The claimant, in this case, doesn’t have to prove the fault on the part of the other party, there is no joint liability. But this liability arises only when the person claiming has been permanently disabled, or if he dies. The compensation that the claimant can claim is Rs 50,000/- in case of death, and Rs 25,000/- in case of permanent disability.

Permanent disability under this Act means :

  • permanent loss of power of any member or joint muscle
  • permanent disfigurement of the face or head
  • permanent deprivation of the sight of either eye, or ear, or any member or joint

Hit and Run

Section 161 Special provisions as to compensation in case of hit and run

For the purposes of this section, section 162 and section 163—

(a) “grievous hurt” shall have the same meaning as in the Indian Penal Code, 
1860 (45 of 1860);

(b) “hit and run motor accident” means an accident arising out of the use of 
a motor vehicle or motor vehicles the identity whereof cannot be 
ascertained in spite of reasonable efforts for the purpose;

(c) “scheme” means the scheme framed under section 163.

(2) Notwithstanding anything contained in the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) or any other law for the time 
being in force or any instrument having the force of law, the General 
Insurance Corporation of India formed under section 9 of the said Act and 
the insurance companies for the time being carrying on general insurance 
business in India shall provide for paying in accordance with the provisions 
of this Act and the scheme, compensation in respect of the death of, or 
grievous hurt to, persons resulting from hit and run motor accidents.

(3) Subject to the provisions of this Act and the scheme, there shall be paid as compensation—

(a) in respect of the death of any person resulting from a hit and run motor accident, a fixed sum of 1[twenty-five thousand rupees]; 1[twenty-five thousand rupees];"
(b) in respect of grievous hurt to any person resulting from a hit and run motor accident, a fixed sum of 2[twelve thousand and five hundred rupees]. 2[twelve thousand and five hundred rupees]."
(4) The provisions of sub-section (1) of section 166 shall apply for the purpose of making applications for compensation under this section as they apply for the purpose of making applications for compensation referred to in that sub-section.

Structured Formula Basis –

Section 163 A

[163A. Special provisions as to payment of compensation on structured 
formula basis.—

(1) Notwithstanding anything contained in this Act or in any other law 
for the time being in force or instrument having the force of law, the owner 
of the motor vehicle or the authorised insurer shall be liable to pay in 
the case of death or permanent disablement due to accident arising out of the 
use of motor vehicle, compensation, as indicated in the Second Schedule, to the legal heirs or the victim, as the case may be. 
Explanation.—For the purposes of this sub-section, “permanent disability” 
shall have the same meaning and extent as in the Workmen’s 
Compensation Act, 1923 (8 of 1923).

(2) In any claim for compensation under sub-section (1), the claimant 
shall not be required to plead or establish that the death or 
permanent disablement in respect of which the claim has been made 
was due to any wrongful act or neglect or default of the owner of the vehicle or vehicles concerned or of any other person.

(3) The Central Government may, keeping in view the cost of living by notification in the Official Gazette, from time to time amend the Second Schedule. ]

Motor Vehicles (Amendment) Bill, 2019

The Motor Vehicles (Amendment) Bill was introduced in Lok Sabha which later on passed it. Now, the Bill is pending consideration before the Rajya Sabha. The Bill seeks to amend the present Motor Vehicles Act, 1988 Following are some of the changes that will be introduced through the Bill :

  • Compensation for the victims – 
  • A scheme will be introduced by the Government through which cashless treatment will be made available to road accident victims in the ‘Golden Hour’ (it is the first hour after the accident when the chances of saving a life are high).
  • The Bill will increase the minimum compensation available in case of hit and run i.e., in case of death, it will be increased from Rs 25,000/- to Rs 2,00,000/– while it will be increased from Rs 12,500/- to Rs 50,000/- in case of injuries.
  • Also, interim relief will be provided to claimants seeking compensation under third-party insurance.
  • Compulsory Insurance – 
  • A Motor Vehicle Accident Fund will be set up to provide compulsory insurance to all motor vehicle owners.
  • This Fund will be used for the following purposes:
  1. to treat persons injured in accidents in their golden hour.
  2. to provide compensation to the families of the victims who died in a hit-and-run case. 
  3. to compensate a person who suffered grievous hurt in hit and run cases.
  4. to compensate persons as prescribed by the Government.
  • Good Samaritans – 
  • As mentioned in the Bill, a ‘good samaritan’ is a person who renders medical or non-medical assistance to the victim after the accident.
  • The assistance should be 
  1. in good faith
  2. without expecting anything in return
  3. Voluntarily
  • While assisting the injured person, if the person dies or suffers injury due to the mistake of the samaritan then he will not be held liable for any civil or criminal proceedings.
  • Recall of Vehicles –
  • If there is any defect in the vehicle and it causes any damage to the environment, or the owner, or other road users then the Government will have the liberty to recall the vehicle. 
  • In the case of a recall, the manufacturer of the vehicle will have to
  1. refund the full cost of the vehicle to the buyer.
  2. replace the defective vehicle with another vehicle having better or similar specifications.
  • Road Safety Board – 
  • A National Road Safety Board will be created to advise the Central and the State governments on the safety rules and traffic controlling rules including:
  1. Vehicle licensing and registration
  2. Rules relating to road safety
  3. Standards of motor vehicles
  4. Usage of enhanced technology
  • National Transport Policy –
  • A National Transport Policy will be constituted after consulting the State Government through which 
  1. A planning framework for road transport will be established.
  2. Structure for grant of permits will be introduced.
  3. Priorities will be specified for the transport system.
  • Offenses and Penalties – 
  • Penalties will be increased for violating the provisions of the Act
  1. In the case of drink and driving the penalty will be increased from Rs 2,000/- to Rs 10,000/- and he will be imprisoned for at least two years.
  2. In case of non-compliance with the standards of a motor vehicle by the manufacturer, the penalty can be raised to Rs 10 crore, or imprisonment for a term, not more than 1 year, or both.
  3. The penalty for exceeding the speed limit will be between Rs 1,000/- to Rs 1,500/-.
  • The Government can also increase the fine every year by up to 10%.

Offenses and penalties under the Motor Vehicles Act, 1988

As per Section 181 of the act if a person drives a vehicle without his driving license or drives before he attains the age of majority then he will be punished with a fine which may extend up to Rs 500/- or shall be imprisoned for a term which may extend to three months, or with both.

According to Section 183(1)  if a person drives his vehicle at a speed that is beyond the speed limit mentioned in Section 112 of the Act then he will have to pay the penalty which may extend up to Rs 400. In case he is convicted a second time for the same offense under this section then the fine will be extended up to Rs 1,000/-.

Section 184 of the Act imposes a fine up to Rs 1,000/-, or with a term of imprisonment which may extend to six months if a person drives at a very dangerous speed risking the lives of people on the road.

If a person drives a vehicle while he is under the influence of drugs then he will have to pay a fine which may extend up to Rs 2,000/-, or with a period of imprisonment which may extend to six months. This is according to Section 185 of the Act.

Section 190(1) – As per this section if a person drives a vehicle that is not fit for driving and he is aware of that defect then he will be punished with a fine of Rs 250/-.  If because of this, an accident is caused resulting in injury or some property damage then he will be punished with imprisonment for three months, or with a fine which may extend to Rs 1,000/-, or with both.

The following documents should accompany the Claim petition:

  • Copy of the FIR registered in connection with a said accident if any. 
  • Copy of the MLC/Post Mortem Report/Death Report as the case may be. 
  • The documents of the identity of the claimants and of the deceased in a death case.
  • Original bills of expenses incurred on the treatment along with treatment record. 
  • Documents of the educational qualifications of the deceased, if any. 
  • Disability Certificate, if already obtained, in an injury case. 
  • The proof of income of the deceased/injured. 
  • Documents about the age of the victim.
  • The cover note of the third-party insurance policy, if any. 
  • An affidavit detailing the relationship of the claimants with the deceased.

Conclusion

“Motor vehicle” or “Vehicle” means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer, but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding twenty-five cubic centimeters.

The Motor Vehicles Act, 1988, the Delhi Motor Accidents Claims Tribunal Rules, 2008, and various other statutes and directions of the Superior Courts- Hon’ble Supreme court of India, and the High Courts of various states govern the proceedings and claims before the MACT.

Motor Accident Claims Tribunals [MACT Courts] deal with claims relating to the loss of life/property and injury cases resulting from Motor Accidents. The Claims are to be directly filed in the concerned Tribunal.  MACT Courts are presided over by Judicial Officers from Delhi Higher Judicial Service. Now, these Courts are under the direct supervision of the Hon’ble High Courts of various States.

Every person must make sure that he does not violate its provisions because in a true sense it is the act of a person that results in an accident.

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