Motor Accident Claims in Asansol — Compensation Under MVA & Legal Help

The motor-accident claims are the claims for the compensation arising out of the road accidents, and they are governed primarily by the Motor Vehicles Act, 1988, as amended by the Motor Vehicles (Amendment) Act, 2019. The Act provides for the compensation to the victims of the road accidents — the injured, the dependants of the deceased, and the owners of the damaged property — and it establishes the Motor Accidents Claims Tribunal (MACT) as the specialised forum for the adjudication of the claims. In Asansol, the MACT is the principal forum for the motor-accident claims, and it adjudicates the claims arising out of the accidents on the highways and the city roads, including the Grand Trunk Road, the National Highways, and the roads within the Asansol Municipal Corporation limits.

The motor-accident claim is a no-fault remedy in the case of the third-party liability, which means that the victim is entitled to a certain compensation regardless of the fault, and a fault-based remedy for the higher compensation, where the negligence of the driver is established. The Act, in Chapter XI, provides for the structured formula for the calculation of the compensation, the fixation of the liability, the role of the insurance companies, and the procedure for the claim. The 2019 amendment has significantly increased the compensation limits and has introduced the solatium fund for the hit-and-run cases, the compensation for the permanent disability, and the simplified procedure.

The importance of the motor-accident law in Asansol cannot be overstated, given the high volume of the traffic on the highways and the city roads and the frequent occurrence of the accidents. A person who is injured in an accident, or the dependants of a person who has died in an accident, is entitled to the compensation for the loss of the income, the medical expenses, the pain and the suffering, and the loss of the consortium. The claim is filed before the MACT at Asansol, and the procedure is summary to ensure the speedy relief. A motor-accident claim lawyer in Asansol advises on the entitlement, the quantum, and the procedure, and represents the claimant through the proceedings to secure the compensation.

The compensation available in the motor-accident claims is comprehensive, and it is designed to restore, as far as the money can, the position that the victim would have been in had the accident not occurred. For the death of the victim, the compensation includes the loss of the dependency, which is calculated on the basis of the income of the deceased, the age, the number of the dependants, and the life expectancy, using the structured formula laid down by the Supreme Court in the case of Sarla Verma and the subsequent judgments. The compensation also includes the funeral expenses, the loss of the consortium (for the spouse), the loss of the estate, and the medical expenses incurred before the death. The 2019 amendment has fixed a minimum compensation of Rs. 5 lakh for the death in a hit-and-run case.

For the injury, the compensation includes the medical expenses (the past and the future), the loss of the income during the treatment and the recovery, the compensation for the pain and the suffering, the compensation for the permanent disability (where the disability reduces the earning capacity), the loss of the amenities, and the cost of the attendant and the transport. Where the disability is permanent, the disability percentage is assessed by the medical board, and the loss of the earning capacity is calculated accordingly. The compensation for the damage to the property includes the cost of the repair or the replacement, the loss of the use during the repair, and the depreciation. The 2019 amendment has fixed a minimum compensation of Rs. 50,000 for the grievous hurt in a hit-and-run case.

The calculation of the compensation follows a structured approach. The court determines the income of the victim, deducts one-third for the personal expenses (where the deceased is married and has dependants), multiplies the resultant by the multiplier (which depends on the age, ranging from 18 for a young person to 5 for an older person), and adds the non-pecuniary damages. The court also considers the inflation and the future prospects of the increase of the income, as laid down by the Supreme Court in the Pranay Sethi case. The compensation is awarded with the interest, typically at the rate of 7 to 9 percent per annum from the date of the accident to the date of the payment. An advocate in Asansol presents the evidence of the income, the age, the dependants, the medical expenses, and the disability, and argues the quantum to secure the maximum compensation.

The question of who can file a motor-accident claim is governed by Sections 166 and 164 of the Motor Vehicles Act, 1988, and the law is liberal to ensure that the victims and the dependants are not denied the access to the compensation. In the case of the death, the claim can be filed by the legal heirs of the deceased — the spouse, the children, and the parents — who are the dependants and who have suffered the loss of the dependency. The legal heirs can file the claim jointly or severally, and where the legal heirs are minors, the claim is filed through the natural guardian or the next friend. The claim can also be filed by the legal representative of the deceased where the deceased has left a will or where the succession has been established.

In the case of the injury, the claim is filed by the injured person himself, and where the injured person is unable to file the claim (such as a minor or a person of unsound mind), the claim is filed through the natural guardian or the next friend. In the case of the permanent disability, the claim is filed by the disabled person, and the compensation is calculated on the basis of the loss of the earning capacity. In the case of the damage to the property, the claim is filed by the owner of the property, who is the person who has suffered the loss. The claim can also be filed by the agent of the injured or the legal heirs, with the proper authorisation.

The Motor Vehicles Act also provides for the claim by the owner of the vehicle, who can claim the compensation from the driver where the accident was caused by the negligence of the driver, and the claim by the insurance company, which, after paying the compensation to the victim, can recover the amount from the owner or the driver where there was a breach of the policy condition. The law also provides for the claim by the pedestrians, the cyclists, and the other road users who are injured in the accident, regardless of whether they were in a vehicle. The claim must be filed within the limitation period, which is six months from the date of the accident under the Act, though the tribunal has the power to condone the delay in the appropriate cases. An advocate in Asansol advises on the persons who can file the claim, the documents required, and the procedure, and represents the claimant through the proceedings.

The filing of the motor-accident claim petition before the Motor Accidents Claims Tribunal (MACT) at Asansol is the first and the most important step in the claim for the compensation. The claim petition is filed under Section 166 of the Motor Vehicles Act, 1988, and it must set out the details of the accident — the date, the time, the place, the vehicles involved, the drivers, and the insurance companies — the details of the victim and the claimants, the nature of the injuries or the death, the income of the victim, the number of the dependants, the medical expenses, and the compensation claimed. The petition must be accompanied by the prescribed court fee and the supporting documents.

The documents to be filed with the petition include the FIR copy or the police report, the accident information report, the medical records (the discharge summary, the operation notes, the prescriptions, the bills), the disability certificate (where the disability is claimed), the death certificate and the post-mortem report (in the case of the death), the proof of the income (the salary certificate, the income-tax returns, the bank statements), the proof of the age (the birth certificate, the school certificate, the Aadhaar), the proof of the relationship of the dependants, the driving licence of the driver, the registration certificate of the vehicle, and the insurance policy of the vehicle. The documents must be in the original or the certified copies, and the foreign documents must be properly authenticated.

The tribunal, on the receipt of the petition, issues the notices to the respondents — the owner of the vehicle, the driver, and the insurance company — who are required to file their replies and to contest the claim. The tribunal frames the issues, records the evidence of the parties, including the examination and the cross-examination of the witnesses and the medical experts, and after the arguments, passes the award. The procedure is summary, and the tribunal endeavours to dispose of the claim within a defined timeframe. The award can be appealed before the High Court at Calcutta within 90 days. An advocate in Asansol drafts the claim petition, assembles the documents, presents the evidence, and argues the quantum, ensuring that the claim is presented effectively and the compensation is secured at the earliest.

The insurance companies play a central role in the motor-accident claims, and the understanding of their role is essential for the claimants in Asansol. Under the Motor Vehicles Act, 1988, every motor vehicle is required to be insured for the third-party liability, and the insurance is a prerequisite for the registration and the use of the vehicle on the road. The insurance company that has issued the policy is the principal respondent in the claim, and the compensation is paid by the insurance company to the victim, subject to the terms of the policy and the defences available to the company.

The insurance company is liable to pay the compensation to the victim regardless of the fault of the driver, in the case of the third-party liability (the no-fault liability under Section 161), and the liability is limited to the amount specified in the policy for the own-damage and the property damage. The insurance company, however, can raise certain defences to avoid the liability, the most common of which is the breach of the policy condition — such as the use of the vehicle for a purpose not covered by the policy (e.g., a private vehicle used as a taxi), the driving by a person without a valid licence, or the driving under the influence of the alcohol. Where the insurance company proves the breach, it can avoid the liability to the owner, but it remains liable to pay the compensation to the victim, and it can recover the amount from the owner.

The insurance company is also responsible for the investigation of the claim, the verification of the documents, and the assessment of the compensation. The company may dispute the income of the victim, the extent of the disability, or the quantum of the medical expenses, and the claimant must be prepared to rebut these with the evidence. The insurance company is also entitled to be heard on the question of the liability and the quantum, and it participates in the proceedings before the MACT. The 2019 amendment has strengthened the role of the insurance companies in the hit-and-run cases, where the compensation is paid from the Solatium Fund, which is funded by the insurance companies. An advocate in Asansol represents the claimant against the insurance company, rebuts the defences, presents the evidence, and ensures that the insurance company pays the compensation in full and without the undue delay.

The hit-and-run cases are a special category of the motor-accident claims, where the driver of the offending vehicle cannot be identified, and the victim or the dependants are left without the recourse against the owner or the insurance company. To address this, the Motor Vehicles Act, 1988, as amended in 2019, provides for the Solatium Fund, established under Section 161, from which the compensation is paid to the victims of the hit-and-run accidents. The Solatium Fund is funded by the contributions from the insurance companies and the government, and it is administered by the General Insurance Council.

The compensation from the Solatium Fund is fixed at Rs. 5 lakh for the death and Rs. 50,000 for the grievous hurt in the hit-and-run case (enhanced by the 2019 amendment from the earlier Rs. 25,000 and Rs. 12,500, respectively). The claim for the compensation from the Solatium Fund is made to the Claims Enquiry Officer, who is the local police officer or the revenue officer, and the claim is accompanied by the FIR, the medical records or the death certificate, and the proof of the identity. The Claims Enquiry Officer conducts the enquiry, verifies the hit-and-run nature of the accident, and forwards the claim to the General Insurance Council, which sanctions the compensation. The compensation is paid to the victim or the dependants through the bank account.

Where the driver of the offending vehicle is later identified, the victim or the dependants can file the regular claim before the MACT against the owner and the insurance company, and the compensation from the Solatium Fund is adjusted against the award. The hit-and-run cases also attract the criminal liability under the Bharatiya Nyaya Sanhita, 2023 (formerly the Indian Penal Code) for the offences of the causing death by negligence, the causing grievous hurt by negligent act, and the hit-and-run under Section 134 of the Motor Vehicles Act (the duty to report the accident). The 2019 amendment has enhanced the punishment for the hit-and-run, with imprisonment up to seven years and a fine. An advocate in Asansol advises on the claim from the Solatium Fund, the criminal complaint, and, where the driver is identified, the regular claim before the MACT, ensuring that the victim obtains the compensation through the available avenues.

The third-party liability claims are the core of the motor-accident law, and they are governed by Chapters X and XI of the Motor Vehicles Act, 1988. A third party, in the context of the motor-accident law, is any person other than the owner and the driver of the vehicle, and it includes the pedestrians, the occupants of the other vehicle, the passengers of the public transport, and the owners of the property damaged by the vehicle. The third-party liability is the liability of the owner and the driver of the vehicle to compensate the third party for the injury, the death, or the property damage caused by the use of the vehicle.

The third-party liability is a no-fault liability under Section 161 of the Act, which means that the third party is entitled to a certain compensation regardless of the fault of the driver. The no-fault compensation is fixed and is payable on the proof of the accident and the injury or the death, without the need to prove the negligence. The victim can also claim the higher compensation under the fault-based liability under Section 166, where the negligence of the driver is established, and the compensation is calculated on the basis of the loss suffered. The two remedies are not mutually exclusive, and the victim can claim the no-fault compensation and, in addition, the fault-based compensation, with the adjustment of the no-fault amount.

The third-party liability is insured, and the insurance company is liable to pay the compensation to the third party, subject to the terms of the policy. The insurance company, however, can recover the amount from the owner where there is a breach of the policy condition, such as the use of the vehicle for a non-covered purpose or the driving by an unlicensed person. The Act also provides for the unlimited liability of the insurance company in the case of the death or the injury, and the liability is limited to the property damage. The third-party claims are filed before the MACT, and the procedure is the same as the other motor-accident claims. An advocate in Asansol advises on the third-party liability, the no-fault and the fault-based compensation, the role of the insurance company, and the procedure, and represents the claimant to secure the full compensation that the law provides.

A motor-accident claim lawyer in Asansol plays a central role in the claim for the compensation, representing the victim or the dependants from the initial advice to the enforcement of the award. The lawyer begins by examining the facts of the accident, the FIR, the medical records, and the income proof, and advises on the entitlement, the quantum, and the procedure. The lawyer identifies the persons who can file the claim, the respondents (the owner, the driver, and the insurance company), and the forum (the MACT at Asansol), and drafts the claim petition with the accurate details and the supporting documents.

The lawyer presents the evidence before the tribunal, including the examination of the claimant, the witnesses, the medical experts, and the income proof, and cross-examines the witnesses of the insurance company. The lawyer argues the quantum on the basis of the structured formula and the Supreme Court guidelines, and rebuts the defences raised by the insurance company, such as the breach of the policy condition, the contributory negligence, or the disputed income. Where the tribunal awards the compensation, the lawyer follows up to ensure the payment by the insurance company, and, where the award is inadequate, advises on the appeal to the High Court at Calcutta.

The lawyer also handles the hit-and-run claims, the claims from the Solatium Fund, and the third-party claims, and, where the accident also involves the criminal case, coordinates with the criminal lawyer to ensure the consistency of the evidence and the strategy. The lawyer also advises on the interim compensation, which can be obtained for the urgent medical needs during the pendency of the claim, and on the investment of the compensation amount, where the court may direct the investment of a portion of the compensation in the fixed deposits for the benefit of the minor dependants. By handling the matter comprehensively, the motor-accident claim lawyer in Asansol ensures that the victim or the dependants obtain the full and the fair compensation that the law provides, and that the financial burden of the accident is mitigated.