Motor Vehicle Act – India – Insurance Policies/Claims/Accidental 

Every year, over 1.51 lakh people are killed in road accidents. This occurs either because of their own fault or by the fault of others; they must pay. However, when a person suffers a loss because of the action of others, the Indian legislation offers them a remedy, which is known as the Motor Vehicles Act, 1988.

Types of Claims Under The Motor Vehicle Act

There are three different sorts of compensation claims that can be filed. They are as follows:

Hit and Run: In such situations, the provisions of section 161 of the Act will be applicable. In this case, the defendant hit the victim with his vehicle and fled instead of helping him or taking him to the closest hospital.

Structured Formula Basis:

It was 1994 when the claim was introduced after amending the Act. This amendment led to the addition of a new provision, i.e. Section 163A. Under this section, there is no need to prove the driver’s fault. Following the identification of the accused, the owner or issuer is required to compensate the claimant.

Procedure for Filing a Claim for Compensation

If an accident causes damage to one’s own car, the person must notify the police and the insurance company before repairing the damage. However, the police should be notified first when it comes to third-party claims, and then the insurance company should be notified.

The owner, or in the event of the owner’s death, the nearest relative, must file a claim for damages. In the event of the death of a third party, the legal heirs of the deceased might bring a claim for compensation.

The application must file with other documents like:

  • Copy of the FIR
  • Documents confirming the victim’s age
  • Copy of Death Report/Post-Mortem Report/Medico-Legal Certificate, as the case may be
  • Proof of Claimant’s Identity
  • Proof if the deceased or injured person’s income statement
  • Cover note if the third party policy, etc.

Motor Accident Claim Tribunal

To process claims under the Motor Vehicles Act, 1988, a tribunal called the Motor Accident Claim Tribunal was formed. The primary objective or purpose for the Tribunal’s creation is to ensure the speedy trial of the cases and that justice is served. The Tribunal investigates situations involving the loss of life, property, or personal injury. Section 173 of the act also has an appeal clause, which specifies that appeals against the claims Tribunals shall be heard by the High Court.