Road safety is an issue of concern for all countries globally, as approximately 1.3 million
people die each year as a result of road traffic crashes as per World Health Organization data. The situation is even more alarming for low- and middle-income countries since 93% of the world’s fatalities on the roads occur in those low- and middle-income countries, even though these countries have approximately 60% of the world’s vehicles. The issue of road safety becomes even more important for India, having one of the largest road networks in the world. The unprecedented rate of motorization and growing urbanization fueled by high rate of economic growth have compounded the problem.

The cost of road accidents is borne not only by the victims and their family, but by the economy as a whole in terms of untimely deaths, injuries, disabilities and loss of potential income. During the year 2020, the total recorded 3,66,138 road accidents caused loss of 1,31,714 persons lives and injured 3,48,279 persons. Unfortunately, the worst affected age group in Road accidents is 18-45 years, which accounts for about 70% of total accidental deaths.

This sometimes happens because of their fault, or sometimes because of the fault of others, they have to pay. But when a person suffers a loss due to the actions of others, the Indian legislature provides them with a remedy and that remedy is available under the Motor Vehicles Act, 1988.

Overview of Motor Vehicle Act, 1988: 

Motor Vehicles Act, 1988 is an inclusive act and was enacted on 1st July 1989. It has replaced the Motor Vehicle Act, 1939. The very first act to govern road transport carriers was the Motor Vehicles Act, 1914. With the change in socio-economic needs, the need to introduce new law was felt and led to the enactment of the Motor Vehicles Act, 1988. This law was also amended in the year 2019.

The Main Features of the Act are as under:

• The act provides compensation for the victims in a road accident, in case of death and grievous injury.
• It provides for the establishment of a Road Safety Board.
• It provides the establishment of a Motor Accidents Claims Tribunal for speedy disposal of the claim cases in case of death or injury.
• It imposes fines and penalties in case of drink and drive.
• It also provides for the recall of vehicles.

Motor vehicle Accident Claims

Motor vehicle accident claims are common given the average number of road accidents which occur each year. They can involve cars, buses, trucks, motorcycles or any other motor vehicle on the road. Speaking with a compensation lawyer after a motor vehicle accident is essential because there are a number of steps you must take immediately after the accident has occurred.

Compensation lawyers can guide you through the process and help you make many types of compensation claims. They will give you information tailored to your particular situation which is important because not every motor vehicle accident claim is the same. For example, if you have been involved in a hit and run incident, the process of claiming compensation will involve different steps than if you were aware of the person at fault.

Insurance Policy under the Motor Vehicle Act:

Section 145 to 164 deals with the insurance of motor vehicles against third party risk. This is also called third party insurance where the insurance company indemnifies the insured person when the insured person is sued or is held liable for damages against the third person. Third parties include any person walking on the road, travelling in another vehicle, or is a passenger in the vehicle that has been insured. This insurance does not include any loss to the owner of the vehicle nor it insures the damages/loss/theft to the vehicle. These two losses are covered under the Comprehensive Policy of the Vehicle. This policy cost more than the third party insurance.

When the Compensation arises

According to Section 165(1) of the Motor Vehicles Act, 1988 the Claims Tribunal can entitle compensation to the claimant in the following circumstances –

• 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 

Who can Claim Compensation:

As per Section 166 of the Act, a person claims compensation if :

1. he has sustained an injury
2. he is the owner of the property 
3. he is the legal representative of the person who died in the motor accident
4. he is the agent authorized by the injured person, or by the legal representatives of the deceased, as the case maybe  

Where the Claim may be filed:

The application for the claim can be filed in the following tribunals :

• The Claims Tribunal where the claimant resides 
• The Claims Tribunal where the owner of the vehicle resides
• The Claims Tribunal where the accident took place

Procedure for claiming compensation:

Where the accident has resulted in the damage of its own vehicle, the person has to inform the police and the insurance company before fixing the damages. When it is a case of third party claims, then first it should be reported to the police, and after that, the insurance company is concerned.

The owner has to apply to claim damages, or in the case of death of the owner, the nearest relative shall apply. In case of death of the third party, the application for claiming compensation can be filed by the legal heirs of the deceased.

The application shall be filed with other documents such as:

• FIR copy
• Documents showing the age of the victims
• Copy of Medico-Legal Certificate/ Death Report/ Post-mortem Report, as the case may be,
• Proof showing income statement of the deceased or injured,
• Proof of Identity of Claimant,
• Cover note of third party policy, etc.