Motor Accident

Motor accidents can be devastating on individuals, their families and their communities. It is important for the victims to understand the legality of the motor accidents in India. This guide seeks to educate you about the notable provisions for motor vehicles pursuant to the Motor Vehicles Act, 1988 (MVA) and 2019 amendments, and processes, remedies and insurance provisions for victims. 

Overview of the Motor Vehicles Act

Motor Vehicles Act, 1988 is a complete Act which regulates all legislations connected to road transport in India. Registration of vehicles; licensing of drivers, vehicle insurance, and regulation of road safety. The first thing the Act is trying to achieve is to reduce the incidence of road accidents and increase the overall safety of everyone on the road. It prescribes penalties for violation and sets rules for vehicle operation on public roads.

Key objectives of the Act

• Safety on roads: With the objective of bringing safe driving practices and the reduction of the occurrence of accidents by means of regulatory enforcement.

• Compensation for victims: To establish a framework for legal claims of victims of road traffic accidents.

• Regulation of transport services: For establishing rules to help operate public transport vehicles and assure with safety standards

What does the Motor Vehicles Act cover?

The Act covers vehicle registration, driver’s licenses, motive insurance, traffic rules, road safety measures, as well as penalties for violation. Its goal is to provide a safe environment for road users and to describe the legal framework by which one may be compensated in case of an accident.

What are the penalties for not following the Motor Vehicles Act?

The penalty for noncompliance can be as severe as the violation. The penalties can be both fine and imprisonment. For example, for someone driving without a license, one is liable to be fined Rs 5,000; reckless driving can lead to fines and imprisonment.

How does the Act contribute to road safety?

The Act provides mandatory safety features in vehicles, driver training programs, and strict penalties for traffic violations. The items also require two wheeler riders and car occupants to use helmets and seat belts, building a habit of safety on the road.

Key Provisions of the Motor Vehicles Act

Compulsory Insurance (Section 146)

Every motor vehicle owner under Section 146 of the MVA, is obliged to insure the vehicle against third party liability. This provision is to cover that victims of motor accidents can get compensation for injuries or damage that take place by collisions of motor vehicles.

Importance of Compulsory Insurance

• Financial protection: Victims are kept safe from the financial service of bills for medical and property damage.

• Legal requirement: It is against the law and, if you do not comply, could result in substantial penalties to pay.

• Immediate access to compensation: Having insurance all the way in case of an accident means that the victim receives their compensation much faster.

What is third-party insurance?

When insurance covers liabilities, arising from injuries to other people or property arising from an accident, it is referred to as third party insurance. While it is an important type of insurance, this does not cover the policy holder’s own vehicle damage – it will only assure that an accident repairer chooses a payout to the victim of the accident in which the insured vehicle was used

Is it mandatory to have motor insurance?

Indeed, all vehicle owners have to carry a minimum of third party insurance in India to carry a vehicle. If you don’t comply, you can face fines, penalties, and legal blowback.

What happens if I drive without insurance?

First time driving with no insurance can land you a hefty fine that is between INR 2,000 and 4,000. Repeat offenders stand even more chance of receiving heavier fines or even imprisonment. Additionally, not carrying insurance when you drive comes with personal liability for the damages or even injuries you might cause in an accident.

Liability for accidents (Section 140)

Section 140 of MVA introduces no fault liability principle whereby victims are compensated without proving negligence of another party. This is particularly useful for those people who have difficulty proving fault in complicated accidents.

Key aspects of No-Fault liability

• Immediate compensation: It also means victims can receive compensation very quickly without the laundering legal process of proving fault.

• Predefined compensation amounts: The amount of compensation to be paid for different categories of injuries is fixed by means of compensation fixed under the Act, to maintain uniformity and fairness in compensation.

What is no-fault liability?

The no-fault liability is a principle of law under which an accident victim may claim compensation for his injuries suffered in an accident, irrespective of the fact of whether one party was at fault or not. The purpose of this provision is to simplify the way that compensation is worked out and to alleviate the trauma for victims at a time when they need their breathing space most.

How much compensation can I claim under this provision?

The amount of compensation depends upon the kind of injury. This has been accommodated in the Act by providing a fixed amount of Rs 50,000 for grievous injuries and Rs 2 lakh for deaths so that affected people receive immediate financial help upon an accident.

Can I claim more than the statutory amount?

Yes, the victims can file a civil suit for additional damages over and beyond statutory amounts if they can show liability, so to speak. It does allow for additional compensation for pain, suffering and/or loss of the ability to live life as one normally would.

Amendments Introduced in 2019

The Motor Vehicles (Amendment) Act, 2019 brought significant changes aimed at enhancing road safety and providing better compensation for victims. The key changes introduced by the amendment are as follows: 

• Increased penalties: : Traffic violations are penalized increasingly more to discourage dangerous driving. Thus, for e.g., the speed over running is permitted to increase from 400 to 1,000Rs for two wheelers and from Rs 1,000 to Rs 2,000 for four wheelers..

• Compensation for Hit and Run cases: TThe amendment to the compensation amount from hit and run cases has been  increased from Rs. 30,000 for death to Rs. 1 lakh and from Rs.10,000 for grievous injury to Rs. 1 lakh. That will make sure victims get an immediate amount of money.

• Mandatory road safety measures: The amendment mandates  installation of cameras and GPS in public transport vehicles in order to increase passenger safety and accountability.

• New offenses and penalties: New law includes strict penalties for new offenses like driving without a seatbelt or helmet and using mobile phones while driving.

What are the new penalties for traffic violations?

In 2019, the amendments brought a lot more severe penalties for most of the traffic violations. For example, the penalties for driving without a helmet are Rs. 1,000 and for not wearing a seatbelt, Rs. 1,000. The government is taking road safety very seriously and that is why fines for drunk driving can go up to Rs. 10,000.

How does the amendment improve compensation for victims?

The amendments improve the compensation amount for those victims of hit and run incidents providing immediate financial relief. It automatically compensates victims without having to prove fault; this makes it much easier for them to get the help.

Are there any new safety measures for vehicles?

Yes, the amendment mandates public transport cars should be equipped with tracking GPS as well as cameras for safety and security purposes. It is meant to cut down on incidents of passenger harassment and make sure drivers are following safety protocol.

Steps to claim compensation

Motor accident claims process can be difficult to navigate. The following are the fundamental steps to guarantee that victims can pleasantly claim compensation.

Step 1: Report the accident

In the case of a motor accident the first step is reporting the same to the nearest police station and filing an FIR (First Information Report). Any claim process would need this.

Importance of filing an FIR

• Legal documentation: The FIR is an important legal document which records the details of the accident so that the date can be furnished for filing of an insurance claim as well as in any subsequent legal proceedings.

• Evidence for claims: It is crucial evidence when the Motor Accidents Claims Tribunal (MACT) and insurance companies decide with respect to liability and compensation.

How do I file an FIR?

In case of an accident file an FIR at the nearest police station with all the details. You will need to give your identification, your vehicle registration, and witness information. Crime file FIR is filled and all details are accurate by giving FIR form.

What information do I need to provide?

It is important to give as much information as possible, for example date, time and place of the accident, a description of the cars involved, names of the drivers, any injuries suffered, if any, and the names of any witnesses at the scene.

Is an FIR mandatory for claiming compensation?

Yes, an FIR is crucial as it becomes a legal proof of the accident. If you don’t have it, your claim can be denied by insurance companies or courts.

Step 2: Gather evidence

Get as much evidence as you can at the scene to back up your claim. This includes:

• Photographs of the accident scene; vehicles; and any visible injuries.

• Witnesses who can corroborate your account contact information.

• Records of the injuries of the accident.

What kind of evidence is helpful for my claim?

Whilst photographs of the accident scene, damage to vehicles, injuries sustained, witness statements and police reports will be useful evidence. It makes your claim stronger because this documentation proves beyond any doubt that it was just an accident.

Can I use eyewitness testimonies in my claim?

Indeed, eyewitness testimony can make powerful evidence of what happened in the case. You collect their contact information, and make sure that they are ok with providing statements, if they are called for it.

How do medical records help my claim?

You get all this written down in medical records to know what extent your injuries were, what treatment you received, and how that will help calculate compensation. They also make a direct connection between your injuries and the accident.

Step 3: File your claim

When you have all the evidence required, file your claim with the insurance company or the MACT.

Claiming with insurance:

• Contact your insurer: As soon as possible notify your insurance company. However, most policies will demand you to report an accident right away..

• Submit claim documents: Provide all the necessary documents such as the FIR, the photographs and the medical reports if there’s any, any other evidence collected, thus, that really helps you.

Claiming through MACT:

• Filing a petition: If you want to file more compensation beyond your insurance policy limits, then you can file a petition in the MACT. Make a prayer from the proceeds for compensation together with all details of the accident and evidence.

• Representation: it is advised to engage a lawyer before the tribunal who is well versed with motor accident claims.

How long do I have to file a claim?

Typically, there must be a claim under the Motor Vehicles Act within three years of the accident. Nevertheless, experts recommend beginning the process as soon as possible in order to increase prospects of getting recovery.

What if my claim is denied by the insurance company?

If your claim is denied all you can do is appeal the decision or you can use legal recourse like taking to the consumer forum or filing a petition in the MACT. A lawyer can help you know your rights and what to do.

Can I claim compensation for both insurance and MACT?

You can get your claim filed with your insurance company and sue under MACT at the same time. But any amount taken from the insurance company while calculating the compensation to be paid by tribunal will be included.

Remedies available for victims

Under the law, victims of motor accidents have a number of remedies available. These include:

Compensation for damages

Victims are entitled to claim compensation for various types of damages, including:

• Medical expenses: Included treatment, hospitalization, rehabilitation and ongoing medical care costs.

• Loss of income: Wages lost while unable to work during recovery compensation

• Pain and suffering: Damages for his physical pain, emotional distress and loss of quality of life.

• Property damage: Payment for damage to the vehicle and to personal property.

How is compensation calculated?

It is calculated by such factors as medical costs, loss of income, seriousness of injury and impacts to the victim’s life. Your claim will be successful only if you provide documentation of all your losses and expenses.

Can I claim for future medical expenses?

You are able to recoup future medical expenses if you can prove that you need continued treatment or rehabilitation from the accident.

What if the accident results in permanent disability?

Additional compensation for loss of earning capacity, and damages for pain and suffering, may be claimed by victims in cases of permanent disability. If the disability will affect your future earnings, you may need someone to assess what your earnings will be like in the future.

Legal recourse

If negotiations between the victims and insurance company or the responsible party don’t work, the victims have the right to pursue legal action. The following steps outline the legal recourse available:

• Filing a civil suit: Victims can sue the responsible party for compensation in a civil suit. This means thorough legal representation and evidence documentation.

• Approaching consumer forums: Under Consumer Protection Act 2019, victims can approach consumer forums for redressal, if the insurance company doesn’t respond or is unfair in its dealings.

How long does a civil suit take?

Civil suits can have very widely varying length, depending on the complexity of the case, court schedules and other factors. By nature, it’ll take months or even years to arrive at a decision.

What are the costs involved in pursuing a civil suit?

Court fees, attorney fees and other costs incurred in gathering evidence are included into legal costs. These costs need to be discussed with your lawyer beforehand, so you know what to expect in a financial sense.

Is there a time limit to file a civil suit?

Yes, the time period for filing a civil suit on motor accident loss is 3 years from the date of the accident. If you want your rights protected, it’s important to file within the allotted time frame.

Insurance-related provisions

Insurance is crucial in protecting the interests of motor vehicle owners and anyone who is a victim of an accident. To get the most out of your insurance policy in case of an accident it is important that you understand exactly what it covers.

Types of motor insurance

Motor insurance policies typically fall into two main categories:

• Third-party Insurance: Insurance required by law that provides insurance against damages caused to other parties involved in an accident. It does not insure the insured's own vehicle or injuries.

• Comprehensive insurance: It covers both third-party liabilities and vehicle damage caused by any other source including theft and natural calamities.

What does comprehensive insurance cover?

This covers damages to your vehicle, damages to third parties and is sometimes referred to as comprehensive insurance in addition to theft and damages by natural disasters. Personal accident cover for the insured driver or passengers is also included.

Can I claim from both my insurance and the responsible party?

Yes, you  can file an insurance claim with your own insurance and still go after the responsible party to get additional compensation for pain and suffering.

How does no-claim bonus work?

No claim bonus is a percentage discount on insurance that the insurance company offers to policyholders who didn’t make any claims in the year of the policy. The receipt of such a discount when premium costs are renewed can be quite significant in bringing the premium down.

Conclusion

If you are involved in a motor accident, understanding of your rights and the legal provisions applicable to motor accidents would help you to take that first important step in your quest to produce justice for your loss. At the snap of your fingers, you can learn to protect yourself, and get the right compensation for your losses, if you know about the Motor Vehicles Act amendments, claims process and other necessary things.

If you have been a part of an automotive accident, or if a loved one has been a part of an automotive accident, it's best to determine what your choices are and attempt to make essentially the most of your compensation; you have to discover a legal professional that will help you.

FAQs

What should I do immediately after an accident?

If possible make sure safety first, if needed call emergency services, report accidents to police, document scenes, collect witness information.

Can I handle the claim process myself?

Although you may be able to deal with the claim yourself, getting legal advice when you can will help you navigate the claim process and get the full compensation you are entitled to.

How can I prevent accidents in the future?

All that you can and must do to reduce the risk of accidents is to follow traffic rules, avoid distractions while driving, maintain your vehicle properly and drive defensively.

What if the accident was partially my fault?

In India, even if you are partly to blame, you can still receive compensation, however, your figure may be reduced according to the percentage at fault. It is known as contributory negligence. It's the circumstances that the tribunal will assess and determine compensation accordingly.

How long does it take to settle a motor accident claim?

Settling a claim takes anywhere from a few days to several months depending on the case and cooperation involved as well as the speed with which a company responds. Simple claims can be settled in a couple weeks, complex ones can take months to years.

Can I claim emotional distress after an accident?

Indeed, you can get some emotional distress compensation, sometimes referred to as 'pain and suffering.' Therapy sessions, articles, and printed doctor’s notes all work to document psychological effects leading up to your injury.

What if the other driver doesn't have insurance?

If the other driver is uninsured you can file a claim with your own insurance company, if you have comprehensive or uninsured motorist coverage. Also, you may recover against the other driver personally, but you'll probably have a hard time unless they're poor.

Can I claim for property damage to my vehicle?

Yes, If you’ve been in an accident and there was damage to your property, you can claim for property damage — repair costs for your vehicle and/or the various kinds of personal property damaged in the accident

What if the accident resulted in a fatality?

When any death occurs as a result of a fatal accident, the legal heirs or dependents of the deceased can claim compensation. It can include loss of income, funeral expenses and loss of companionship, etc.

Are there any legal expenses I need to consider?

Legal expenses do include attorney fees, court filing fees, and costs of getting evidence. A lot of lawyers have a 'no win, no fee' arrangement, where you don't have to pay out if you lose, but you do ensure it's clear before you sign.

Do I need a lawyer to file a claim?

It is not mandatory to hire a lawyer, but the presence of legal representation can make it much easier for you to get a fair settlement. If there is the need, a lawyer can help you move through legal complexities, and will negotiate with insurers when and where necessary.

Can I still claim compensation if I didn't call the police at the scene?

Yes, even if you didn’t call the police, you can still claim compensation. Still, a police report can buttress your claim.You should be making sure to collect other evidence such as witness statements and photographs.

What happens if I miss the deadline to file a claim?

You'll also lose your right to claim compensation unless you can prove you missed the deadline, and that's usually three years from the date of the accident. You may request an extension in some cases if you can provide a valid reason, but that is at the courts discretion.