Motor accident compensation is one of the more claimant-friendly areas of Indian law, and a great many people never claim simply because they do not know the tribunal exists.
Preserve the basics first
- Ensure an FIR is registered, and obtain a copy along with the charge sheet when filed
- The accident information report which the police are required to forward to the Tribunal
- All medical records and bills, and the disability certificate from a competent authority if there is permanent disability
- Proof of income: salary certificate, tax returns, or evidence of business income
- The vehicle and insurance particulars of the offending vehicle
The routes to compensation
- Section 166, Motor Vehicles Act, 1988: the fault-based claim, where negligence of the driver is alleged. This is where full compensation is awarded and it is the main route. There is no limitation period for filing, the earlier six-month limit having been removed.
- Section 164: the no-fault liability provision, giving a fixed statutory sum in cases of death or permanent disablement without needing to prove negligence. Useful for early relief.
- Section 163 schemes and the Solatium Fund, in hit and run cases.
- Interim compensation can be sought while the claim is pending.
How the amount is worked out
The framework comes from Sarla Verma v. DTC (2009) and National Insurance v. Pranay Sethi (2017):
- Establish monthly income, then add future prospects as a percentage based on age and whether employment was permanent or self-employed.
- Deduct for personal expenses in death cases, on a scale depending on the number of dependants.
- Apply the multiplier for the age of the deceased or injured, from the Sarla Verma table.
- Add conventional heads: loss of estate, funeral expenses, loss of consortium, and for injury claims, medical expenses, attendant care, pain and suffering and loss of amenities.
Where to file, and why it matters
Under Section 166(2) you may file before the Tribunal having jurisdiction over the place of the accident, or where you reside or carry on business, or where the respondent resides. Choosing your own city rather than the site of the accident often saves years of travel, and it is a right, not a concession.
Under Section 166(2) you may file before the Tribunal having jurisdiction over the place of the accident, or where you reside or carry on business, or where the respondent resides. Choosing your own city rather than the site of the accident often saves years of travel, and it is a right, not a concession.
Practical points
Join the driver, the owner and the insurer as respondents. Do not accept an early settlement from an insurer without valuing the claim properly; the difference is frequently very large. Compensation awarded is generally not taxable, and interest usually runs from the date of the petition.