Road Accidents Compensation Increases Upto Rs. 5 Lakh

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Motor Vehicle Amendment Bill 2017 And Its 17 Propositions

After 24 long years there has been a revision in the compensation for the road accident victims. Also if the victim thinks that they deserve a higher compensation they are free to go to the Motor Accidents Claim Tribunal (MACT), says the Transport Ministry of India.

Road Accidents Compensation Increases Upto Rs. 5 Lakh
Road Accidents Compensation Increases Upto Rs. 5 Lakh

In case of deaths , the family of the victim will be compensated with Rs. 5 lakh. Injuries, or disabilities caused by road accidents will be given a compensation ranging from Rs. 50000- Rs. 5 Lakhs, depending on the type of injury. This compensation rate will increase 5 % every year , says a TOI report. This amount is 10 times the earlier one. Reports also suggest that every year 1.5 lakh people die in road accidents and 5 lakh get injured. The third party vehicle premium outgo is also likely to increase in near future.

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Road Accidents Compensation Increases Upto Rs. 5 Lakh
Road Accidents Compensation Increases Upto Rs. 5 Lakh

The Motor Vehicles Act has an existing provision of Rs 50,000 compensation in case of a fatality and Rs. 25000 in case of an injury leading to permanent disability. In accordance with the “no-fault liability” norm the victim does not have to prove that the accident was caused due to the negligence of the vehicle driver. However, no one ever is satisfied with this amount, so ultimately everyone reaches out to MACT. After that, the victim’s compensation gets based on the schedule II of the Motor Vehicle Act, where the amount gets increased depending on the age, income, and the number of dependents of the victim. Here the victim also has to prove the negligence of the driver. “The idea behind this move is to reduce the number of litigation in majority of the cases. Those who want higher compensation can take the legal route, which takes time,” said an official. This revision was done to cope up with the increased amount of expenditure in livelihood in the recent days.

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