Indian laws on accident claims are quite stringent. The laws were
formulated by prioritizing the best interests of the victims and those
who are liable to disburse the compensation, such as insurance
companies. Indian laws on motor vehicle accident claims are strict but
beneficial for victims in claiming their legal rights in a court of
law.
The Fatal Accidents Act, 1885 was enacted in India to protect the
legal rights of the accident victims and their legal heirs. This Act
entitles the legal heirs of a deceased accident victim to claim
compensation from the person who committed negligence.
Indian Law on Accident Claims: Introduction of the Motor Vehicle Act
Indian law on accident claims is relevant due to the higher rates
of accidents leading to loss of life and property across the country. In
1988, the Government of India introduced the Motor Vehicle Act, to make
the Indian laws on accident claims more effective.
The Act provides for compulsory third party insurance and procedure
of adjudication, to ensure relief to victims of accident cases. Also,
the Act stipulates for establishment of Motor Accident Claims Tribunal
to address the accident claim cases. This means that if you are a victim
of a motor vehicle accident, your first point of reference to press for
a claim is at the aforementioned tribunal that has been established to
address similar claims.
Indian Law on Accident Claims: No Fault Basis and Mandatory Vehicle Insurance
Indian law on accident claims pertain mostly to the Motor Vehicle
Act. Section 140 to 144 of the Act provides for No Fault Basis, which
ensures relief to the families of victims who are killed in hit and run
accidents, and where the killer vehicle is not identified. Compensation
is granted, only if the following is proved:
- Accident was caused by the offending vehicle.
- The offending vehicle was insured.
- Death or injuries were caused by the accident.
Section 145 to 164 of the Act provides for mandatory third party
insurance, which is compulsory for a vehicle owner. This means that if
you have a vehicle that you use to move in public places, you cannot do
so legally unless you have an insurance policy. Typically, your
insurance policy papers must always be kept in the car with your car
registration and driving licence. Section 146(1) of the Act prohibits a
vehicle owner from using the vehicle in a public place without
undertaking an insurance policy in compliance with the Act.
Further, the Act provides for unlimited liability and limited
defense of the insurance companies. Several court judgments passed by
the Supreme Court have restricted the legal defense strategies put
forward by various insurance companies. Also, the liability to prove the
limited defenses rests on the insurance companies.
The limited defenses allowed to be made by the insurance companies include:
- Use of vehicle for racing and speed testing.
- Use of vehicle not allowed by permit.
- Divers without a valid Drivers license or who have been disqualified from owning Drivers license.
- Void insurance policy due to non-disclosure of crucial facts.
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