Statutory Basis
Primary Act: The Motor Vehicles Act, 1988 (Amended 2019)
Key Sections: Sec 166 (Application), Sec 164 (No-Fault Liability), Sec 161 (Hit & Run).
Overview of the Law
The Motor Vehicles Act, 1988 is a welfare legislation designed to provide relief to victims of road accidents. The law mandates that victims (or their legal heirs) are entitled to "Just Compensation" for injuries, disability, or death caused by the use of a motor vehicle.
Claims are adjudicated by the Motor Accident Claims Tribunal (MACT), which is a specialized inquiry forum. The process is not criminal but civil in nature, focusing on monetary relief rather than punishment.
New Limitation Period (2019 Amendment)
Section 166(3): As per the latest amendment, no application for compensation shall be entertained unless it is made within six months of the occurrence of the accident.
Who Can File a Claim? (Section 166)
- The Injured Victim: A person who has suffered bodily injury.
- Legal Heirs: Family members (spouse, children, parents) in case of death of the victim.
- Owner of Property: In case of damage to property (vehicle, shop, etc.).
- Authorized Agent: A duly authorized agent (with Power of Attorney) can file on behalf of the victim.
Types of Liability
1. Fault Liability (Section 166)
The claimant must prove that the accident was caused by the negligence of the driver. There is no upper limit on compensation; it is calculated based on age, income, and loss.
2. No-Fault Liability (Section 164)
(Replaces the old Section 140). The owner/insurer is liable to pay compensation even if there was no negligence on their part.
- Death: Fixed at ₹5,00,000.
- Grievous Hurt: Fixed at ₹2,50,000.
3. Hit & Run Accidents (Section 161)
When the offending vehicle cannot be identified, compensation is paid from the Solatium Fund.
- Death: Increased to ₹2,00,000.
- Grievous Hurt: Increased to ₹50,000.
The Claims Process: Step-by-Step
1 FIR & Police Report (DAR)
The police must file a Detailed Accident Report (DAR) with the MACT within 30 days. This DAR can effectivey be treated as the claim petition itself (Section 166(4)).
2 Filing the Application
Under Section 166(2), you can file the claim in the MACT Tribunal having jurisdiction over:
- Option A: Where the accident occurred.
- Option B: Where the claimant (victim/family) resides.
- Option C: Where the defendant (driver/insurer) resides/works.
3 Evidence & Trial
Claimant submits documents (Medical bills, Disability Certificate). The Insurance company may contest the claim. Doctors may be examined to prove disability percentage.
Checklist of Documents Required
- Copy of FIR / Charge Sheet / DAR
- Wound Certificate / Discharge Summary
- Medical Bills (Originals are preferred)
- Disability Certificate (from Medical Board)
- Proof of Age (Aadhar/Voter ID)
- Proof of Income (Salary Slip/ITR)
- Death Certificate & Post Mortem Report (in fatal cases)
- Legal Heirship Certificate (in fatal cases)
Compensation Calculation
The formula for "Just Compensation" covers Pecuniary (Financial) and Non-Pecuniary (Emotional) losses.
The Formula (Sarala Verma Case)
(Annual Income + Future Prospects) x Multiplier - Personal Expenses + Conventional Heads
- Multiplier: Factor based on age (e.g., 18 for age 15-25, 15 for age 36-40).
- Future Prospects: Add 40% (if <40 yrs) or 30% (if 40-50 yrs) for salaried persons.
- Conventional Heads: Loss of Estate (₹15k), Loss of Consortium (₹40k), Funeral Expenses (₹15k).
Critical Rights: Golden Hour & Good Samaritans
The law now prioritizes saving lives over procedures. Know these vital protections:
The "Golden Hour" (Sec 162)
The first hour after an accident is crucial. The Government provides Cashless Treatment for accident victims during this period in designated hospitals.
Good Samaritan Law (Sec 134A)
If you help an accident victim, you are protected from harassment. You cannot be forced to reveal your identity or attend court unless you choose to.
10 Landmark MACT Judgments
National Insurance vs. Pranay Sethi (2017)
Standardized additional compensation for 'future career growth' (40% or 30% addition) even for self-employed victims.
Sarla Verma vs. DTC (2009)
Fixed the 'Multiplier Table' based on age to ensure uniform compensation awards across all Indian courts.
Magma General Insurance vs. Nanu Ram (2018)
Expanded 'Loss of Consortium' to include Filial (for parents) and Parental (for children) consortium, not just Spousal.
Mukesh Singh vs. State (2017)
Held that a driver holding a Light Motor Vehicle (LMV) license requires no separate endorsement to drive a transport vehicle (taxi/van).
Kishan Gopal vs. Lala (2013)
Enhanced notional income for children (non-earning) in fatal accidents, recognizing their potential future contribution.
National Insurance vs. Balakrishnan (2013)
Clarified that 'Comprehensive/Package' policies cover occupants/pillion riders, unlike 'Act Only' policies.
Jai Prakash vs. National Insurance (2010)
Directed police to file Detailed Accident Reports (DAR) within 30 days to speed up settlements.
Bimla Devi vs. Himachal RTC (2009)
MACT cases require 'Preponderance of Probability' (likely event), not 'Beyond Reasonable Doubt' like criminal cases.
Kirti vs. Oriental Insurance (2021)
Recognized the economic value of a homemaker's work, granting notional income for compensation calculation.
Naveen Kumar vs. Vijay Kumar (2018)
The registered owner (in RTO records) remains liable for compensation even if the vehicle was physically sold/handed over.
Need Specific Legal Guidance?
Every case has unique facts. If you need clarity on your specific situation or need to file a claim, you may visit the chamber.
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