LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

hemlata nath   11 November 2021

Accident compensation

Retired friend was killed in a road accident and meagre compensation was given. Is there a ruling that for retired persons, accident compensation will be calculated based on his income as shown in the Income Tax returns filed by him in the last three years ? Payable compensation would be 10 times of such average annual income ? Such a computation would be of help for his dependents, who are suffering now.


Learning

 2 Replies

Anaita Vas   11 January 2022

If you or a loved one were involved in a road crash that resulted in death, injury, or disablement, you are eligible to receive compensations from the Motor Accidents Claims Tribunal (MACT). Established under the Motor Vehicles Act of 1988, MACT is a civil court that gives victims an opportunity to be heard. If the accident also involved a hit-and-run, you may be eligible for further compensation from a program known as the Solatium Scheme.

The legal heirs of people who have died in accidents can file compensation claims directly or through an advocate. 

Firstly, you'll have to file an FIR. 

Secondly, you'll have to produce the necessary documents.

Thirdly, whenever a Tribunal is required to fix the amount of compensation in cases of accident, it often involves some guesswork, some hypothetical considerations and some amount of sympathy. It usually is based on if the accident resulted in death or injury, the age of the victim, the marital status of the victim, the nature of employment of the victim, his/her job type, annual income, number of dependants etc. 

Fourthly, you will have to file an application. There are two ways a claim application for compensation can be filed with the MACT:

  • An application for compensation made by persons/victims/family of deceased (claimants) [under Section 166 (1)] or
  • By treating any report of the accident - the Accident Information Report (AIR), which is forwarded to the Tribunal [under Section 158 (6)] as an application for compensation. [under Section 166 (4)].

The last part is the court procedure. In Claim Cases, it is difficult to get witnesses, much less eye-witnesses, thus extremely strict proof of facts in accordance with provisions of Indian Evidence Act may not be adhered to religiously.

The Tribunal is required to follow such summary procedure as it thinks fit. Upon receipt of an application for compensation (either filed by the claimant/applicant or initiated by the MACT), the Tribunal shall:

  • give notice to the insurer under section 149(2) of the Act;
  • give an opportunity of being heard to the parties to the claim petition as also the insurer;
  • hold an inquiry into the claim; and
  • make an award determining the amount of compensation which appears to be just. [Section 168].

The award of the Tribunal should specify the person/s to whom compensation should be paid. The Tribunal should deliver copies of the award to the parties concerned within 15 days from the date of the award.It should also specify the amount which shall be paid by the insurer/owner/driver of the vehicle involved in the accident or by all or any of them. [Section 168].

You can refer to Smt. Suresh Lata vs Shri Subhash Chand on 4 January, 2016.

 

Regards,

Anaita Vas

hemlata nath   14 January 2022

Thanks for the consolidated advice on how to proceed in case of an accident.

Will look up the case referred.   Regards


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register