Road accident claim compensation ii

1. Road Accident Claim Compensation
(Part - 2)
- Ayushma Sharma

2. Road Accident Claim Compensation
➢ Types of Claim
➢ Concept of Just Compensation
➢ Own Damage Insurance Claim
➢ Third Party insurance Claim

3. Types of Claim
There are three types of claims under which compensation can be claimed, and they are :
● No-Fault Liability - under Section 140 of the Act. The claimant, in this case, doesn't have to prove the fault on the part of the
other party, there is no joint liability. The compensation that the claimant can claim is Rs 50,000/- in case of death, and Rs
25,000/- in case of permanent disability.
● Hit and Run - Section 161 of the Act deals with the claims made under Hit and Run cases. In such cases, the accused hits the
victim with his vehicle and instead of helping him chooses to run away. As per section 163(3) in case a person is injured he is
to be paid a sum of Rs 12,500/- and in case of death, his legal representatives will get Rs 25,000/-.
● Structured Formula Basis - under section 163 A. this section was added through the Amendment Act of 1994. According to
this section a claimant does not need to prove the fault of the driver, but the identity of the accused has to be revealed. Also,
the claimant can either file a complaint under section 140 or section 163 A.

4. Compensation of Just Compensation
● Just Compensation is that compensation which is determined on the basis of the evidence produced. It was held in Ramla and
others v. National Insurance Company Limited and Others (2017).
● It cannot be considered as time-barred and doesn’t give a reason to file another case for an already increased amount.
● The Court also held that the Courts have the power to award compensation more than what is claimed by the claimants.

5. Own Damage Insurance Claim
● When a person’s vehicle is damaged in an accident then he is supposed to inform the insurer and the police to assess the
damage. This type of situation comes under own damage claim in motor insurance.

6. Third Party Insurance Claim
● The third-party can choose to file a claim against the person who has caused the accident and that claim is most likely to be
settled by the insurance company.
● The claiming process depends on the consequences of the mishap. Following are the two claiming processes based on the major
happenings :
Property Damage -
1. After the happening of the accident which resulted in damage to the third party’s property, the third party can choose to file a
compensation claim against the person. For this, he has to first file an FIR (First Information Report) in the closest police station
and obtain the insurance details of the vehicle.
2. Then he has to submit the said documents while filing the claim. The Court will then decide the amount of compensation. Though
the maximum compensation that a person can get in case of damage to property is Rs 7,50,000/-.
Injury, or Disability, or Death -
1. After the happening of the accident which resulted in injury, or disability, or death of the third party, the legal representatives of the
third-party have to file an FIR in the police station that has jurisdiction over the accident.
2. Also, the third party has to get the documents related to the vehicle’s insurance. The Claims Tribunal will then decide the case. If
the owner wants, then, he can settle the matter outside the court as well.