Introduction:
The number of vehicles on the road in India is increasing on a daily basis. We still have to cope with the unfavourable incidence of traffic accidents, despite technological advancements. Almost every day, road accidents occur in major cities. These mishaps might be lethal in some cases. Heavy traffic on the roads and reckless driving are two major causes of road accidents. Also, road accidents are one of the leading causes of sudden or unexpected mortality in India.
In India, around five lakh traffic accidents occurred in 2015, killing roughly 1.5 lakh people and injuring another five lakh. As a signatory to the Brasilia Declaration, India aims to cut traffic fatalities and accidents by half by 2022.[1] In India, there were 3,54,796 road accidents in 2020, with 1,33,201 people killed and 3,35,201 injured.[2]
Because of this fear of sudden accidents which damages the vehicle as well as injure the body, a Motor Vehicle Insurance Claim can be filed. Insurance protects people from such misfortunes and even risks. Individuals and businesses alike benefit from insurance. A formal request for payment to a policy provider is known as an insurance claim. After an occurrence that is covered by the policy occurs, a claim is filed. A claim’s payment is typically used to replace or repair the property or pay for medical expenses incurred as a result of an injury.
Motor Vehicle Act, 2019
The Motor Vehicles Act of 2019 has been in effect in India since September 1, 2019. In 1988, the Motor Vehicles Act was enacted. It established laws and regulations for all elements of road transportation, including car registration, permit management, traffic regulation, insurance, and fines. In addition, the Motor Vehicle Act mandates that a driver have a valid driver’s licence. Furthermore, without a registration number, no vehicle can be operated. The penalties for traffic offences have been dramatically enhanced and have become more rigorous than ever before under the 2019 Act.
The new Motor Vehicle Act of 2019 is focused squarely on encouraging motorists to take traffic regulations more seriously, resulting in the promotion of safe and sustainable mobility across the country. This Act primarily attempts to provide road safety, recompense for accident victims, third-party insurance, and vehicle health. New changes in the legislation included – penalties for driving without a licence, without insurance, driving with disqualified driving license, driving under the influence of alcohol or intoxicating material, racing or speeding, and driving without seat belts and helmets, etc.
The 2019 Act included several notable characteristics like Road Safety and Environment Health, Fitness of Vehicle, National Road Safety Board, Compensation for Victims of Road Accidents, Protection of Good Samaritan, Compulsory Insurance, Taxi Aggregates, National Transportation Policy, Training of Drivers, Driving Licence and Vehicle Registration, online Driving licence, Accident funds, Better insurance Facilities and many more.
The act benefited in a number of ways, such as – This amendment’s (2019) main focus is on e-government. It is no longer required to have specific educational prerequisites in order to obtain a transportation licence as a result of this. This enables online learning for licences and extends the validity duration of the driver’s licence.
For the average person, the most significant benefit of this change is an increase in compensation for victims and their families, as well as better and faster insurance facilities.
With the usage of the ‘Sarathi’ and ‘Vahan’ platforms, provisions have been made to improve the car registration procedure and make it more convenient. Provisions have been created to allow car registration at the dealer’s end. Temporary registrations have also been prohibited.
The level of air pollution in cities is projected to decline dramatically if stronger limits on vehicle fitness are implemented. The system is projected to be more efficient in its operations as a result of digitization and e-governance, reducing hazards.
Steps to File an Insurance Claim
A claim can take a short or long time to process. It depends on the size of the claim a person needs to file. Sections 145 to 164 deal with third-party liability insurance for motor vehicles.
A tribunal called the Motor Accident Claim Tribunal was formed to process claims under the Motor Vehicles Act, 1988. The fundamental motivation or rationale for the tribunal’s creation is to ensure that cases are tried quickly and that justice is served. The Tribunal investigates instances involving the loss of life, property, or personal injury. Section 173 of the act also has an appeal clause, which specifies that appeals against the claims Tribunals shall be heard by the High Court.
A claim for losses to Self or Others (Third Party) as a result of a motor accident is provided for in the Motor Vehicle Act 1988. There are two types of injuries: one where harm is caused to a third party in the form of injury or damage to his or her property; and the other when harm is caused to a third party in the form of injury or damage to his or her property.
Second, where damage is caused to one’s property, such as the insurer’s automobile.
In the event of a third-party claim, the accident must be notified to the police and subsequently to the insurance provider as soon as possible. Before having his or her damage repaired, the person must notify the insurance company and the police.
According to the Motor Vehicles Act, third-party insurance is required for all vehicle owners. The person and their vehicle are not covered by third-party insurance. It only covers his/her legal obligation for the damage they may do to a third party while driving their cars, such as bodily injury, death, and property damage. The injured third party is the beneficiary of third-party insurance. The insured or policyholder is merely the policy’s nominal beneficiary.
Procedural Steps to File the Claim
Filing of an FIR
In the event of a road accident, including third-party or significant accidents, an FIR is required when making a claim. In the case of small accidents, such as dents, the police FIR can be avoided. In the event of a catastrophic accident involving bodily injury or death, it is necessary. The FIR might be filed near the scene of the accident, the person’s residence, or the hospital to which the person has gone.
The Insurer must be Informed
The incident should be notified to the insurance carrier within 7 days, failure to do so can result in the claim being refused. In other circumstances, the amount of time granted to inform is significantly reduced.
Providing the Insurer with Mandatory Documents
The claim process will not begin until the insurer receives all required documentation. Inquire with the insurer about the required documents and the timeframe in which they must be obtained. The insured is required to submit certain documentation.
Approaching a Lawyer
After filing the FIR, contact a lawyer that specialises in filing motor vehicle claims and provide a copy of the FIR, as well as a detailed description of the incident.
Motor Vehicle Claims Tribunal
It is a specialist tribunal because it was established to resolve disputes involving motor vehicle claims. Approach the tribunal with your counsel and adhere to the tribunal’s orders.
Jurisdiction of the Tribunal
The tribunal’s jurisdiction depends upon the place or location where the FIR has been filed. Approach the appropriate tribunal since the defendant may claim that the jurisdiction is unlawful, and the claim procedure may go a long way.
Right of Fair Hearing
The right to a fair trial means that when the parties come in court, both parties are given the opportunity to be heard, ensuring that the court follows the principles of natural justice, which are a component of the constitution’s essential structure. These ideas included the principle of the right to a fair hearing, which assures that they receive justice. Arguments must be framed in the prescribed manner.
Examination of Evidence
The evidence or the substance of both sides’ arguments will be examined by the court. The judge will review the material to see what pieces of evidence or substantial arguments help in interpreting the truth or reaching a conclusion in this case where the petition is for a claim of a motor vehicle for a third party.
Judgement
The decision will be based on an assessment of the evidence, and it will be accompanied by every explanation for the decision. Only at this point will relief in the form of compensation or a claim be granted or denied.
K. Gopal Krishnan v. Sankara Narayanan
The Madras High Court held in this case that a scooter owner does not need to get a third-party risk policy to cover the claim of a pillion rider who is carried without charge. If he is hurt, the insurance company will not be liable unless the scooter owner obtains coverage that covers such risks. A private carrier that has been registered with the RTO and is covered by an insurance policy cannot be utilised to transport passengers or commodities for rent or reward. However, if it is utilised in this manner and the employees of a party hiring the insured’s private car are hurt in an accident, the insurance company is not liable.[3]
Conclusion
The knowledge about the procedure and important requisites for filing a motor vehicle Insurance claim are and has become a necessity these days. Almost every average Indian family owns a motor vehicle, the correct information about the claim will surely benefit or may save them in such circumstances.
References:
[1] Overview of Road accidents in India, PRSINDIA (Nov. 02, 2021, 1:18 PM) https://prsindia.org/policy/vital-stats/overview-road-accidents-india.
[2] The annual report of the National Crime Records Bureau (NCRB).
[3] AIR 1998 SCC 588.
0 Comments