Motor Accident Claims — MACT मोटर दुर्घटना दावे — Motor Accidents Claims Tribunal

Under Section 166(3) MV Act, no application for compensation shall be entertained unless it is made within 6 months of the accident. However, the Motor Accidents Claims Tribunal can condone delay on sufficient cause being shown. Courts liberally condone delay — especially where the claimant was hospitalised, or the family was unaware of the legal remedy. There is no absolute outer time limit — but unexplained long delays (years) may be refused. File as soon as possible — delay weakens the case and evidence may be lost.

In Sarla Verma v. DTC (2009) 6 SCC 121, the SC settled the multiplier method: Net annual income = Annual income minus 1/3rd for personal expenses (if married with dependents). Compensation = Net annual income × Multiplier (based on age of deceased). The multiplier table: age below 15 — multiplier 15; 15-20 — 16; 20-25 — 17; 25-30 — 17; 30-35 — 16; 35-40 — 15; 40-45 — 14; 45-50 — 13; 50-55 — 11; 55-60 — 9; above 60 — 8. To this, add future prospects (Pranay Sethi 2017) and non-pecuniary heads.

Future prospects represent the expected increase in the deceased/injured person's income over their working life — based on career growth, promotions, and inflation. The SC in Pranay Sethi v. National Insurance Co. (2017 Constitution Bench) settled the mandatory additions: below 40 years — add 40% of income; 40-50 years — add 25%; 50-60 years — add 10%; above 60 years — Nil. These percentages apply to both salaried and self-employed persons. The future prospects amount is added to the income before applying the multiplier — significantly increasing the total compensation.

Yes — Section 161 MV Act (as amended in 2019) provides for hit-and-run compensation from the Solatium Fund: ₹2 lakh for death; ₹50,000 for grievous hurt. Application is made to the Claims Enquiry Officer (police). The claimant need not prove negligence — only that the accident was caused by a motor vehicle that fled the scene. This is separate from — and in addition to — a full fault-based claim if the vehicle is later identified and traced. Hit-and-run drivers now face a minimum 7-year sentence under BNS S.106(2).

Contributory negligence means that the victim themselves was partly responsible for the accident — for example, by crossing the road without looking, or riding without a helmet. If the MACT finds contributory negligence — the total compensation is reduced proportionately. For example: if total compensation is ₹20 lakh and the victim's contributory negligence is assessed at 25% — the final award is ₹15 lakh. No-fault compensation under S.164 MV Act is not affected by contributory negligence — the ₹5 lakh / ₹2.5 lakh is payable regardless.

If the vehicle was uninsured — the vehicle owner is personally liable to pay compensation. The MACT still passes the award against both the owner and the driver. The victim is entitled to compensation regardless of whether the vehicle was insured. In cases of uninsured vehicles — the claimant may also seek relief from the Motor Insurance Insolvency Fund (MIIF) or the state. The SC in Swaran Singh (2004) settled that lack of insurance does not defeat the victim's right to compensation — the state or fund steps in if the owner cannot pay.

In a fatal accident — the claimants are the legal heirs and dependents of the deceased: spouse, children (including adult children who were dependent), parents, and any other person who was financially dependent on the deceased. In an injury accident — the injured person himself/herself is the claimant — for medical expenses, disability, loss of income, pain and suffering. Multiple family members can file a single joint petition. The compensation award is distributed among all claimants based on their dependency and relationship to the deceased.

For a housewife or non-earning person — the SC in National Insurance Co. v. Indira Srivastava (2008) held that notional income must be assigned based on the value of services rendered. The 2019 MV Amendment suggests using minimum wage as the benchmark. Courts typically apply state minimum wages (or national minimum wages) as the notional income. Future prospects are then added (Pranay Sethi formula — +40% if below 40 years), and the multiplier method is applied. Non-pecuniary heads (pain, suffering, consortium) are also awarded separately.

Yes — motor accident cases are among the most common matters settled at Lok Adalat under the Legal Services Authorities Act. Lok Adalat settlements offer: immediate payment, no court fees, no appeal by either party after settlement, and savings on litigation cost. The MACT itself conducts Motor Accident Lok Adalats periodically — parties are invited to settle. Insurance companies typically participate actively. The settlement amount at Lok Adalat is usually fair — often close to the full tribunal award — and avoids years of litigation. Strongly recommended for routine cases.

Yes — when a minor is among the claimants in a MACT case, the MACT tribunal directs that the minor's share of the compensation be invested in a Fixed Deposit (FDR) in a nationalised bank until the minor attains majority (18 years). The interest on the FDR is also available to the guardian for the minor's maintenance and education. The FDR is operated by the natural guardian or a court-appointed guardian. On the minor attaining 18 years — the FDR can be broken and the amount given to the now-adult claimant.