Understanding Motor Third-Party Insurance and Claims Regulations
Motor third-party insurance entails liability coverage for bodily injury and/or property damage in the event of an accident. This type of policy cannot be altered without approval, and there are specific regulations regarding policy periods, transfers of ownership, and cancellations. Additionally, personal accident cover for owner-drivers is mandatory, and certain guidelines must be followed when canceling or transferring policies.
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MOTOR THIRD PARTY: INSURANCE & CLAIMS
GENERAL REGULATION S S GR. 3 GENERAL REGULATION DESCRIPTION DESCRIPTION TYPES OF POLICIES (i) death and Property Damage .Personal Accident Cover for Owner-Driver is also included. (ii) (i) Restricting the scope of cover under Section insured) Excepting this, no alteration or extension of any of the Covers, Terms, Conditions, Exclusions, etc. of any of the Policies/Endorsements laid down in this tariff is permitted without prior approval of the TAC. PERIOD the Schedules under various Sections of the India payable on policies issued or renewed for a period of twelve TRANSFERS Liability Only policy or under a Package policy, is deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of transfer. Cover 52 (Refer (ii) TYPES OF POLICIES: : There are two types of Policies : (i) Liability Liability Only Only Policy Policy: This covers Third Party Liability for bodily injury and/ or (ii) Package (i) above. Package Policy Policy: : This covers loss or damage to the vehicle insured in addition to Section- -I I (loss (loss of of or or damage damage to to the the vehicle vehicle insured) of the Package policy without any reduction in Tariff rates is permitted. GR. 11 PERIOD OF OF INSURANCE INSURANCE- - Unless specifically stated otherwise, premiums quoted in India Motor Motor Tariff twelve months Liability Only Tariff are the premiums months. Only cover GR. 17 TRANSFERS- - On transfer of ownership, the Liability cover, either under a GR. 22 Cover Note 52 in terms of Rule 142 Sub-Rule (1) of the Central Motor Vehicles Rules 1989. Refer Section (ii) In terms of Rule 142, Sub-Rule (2) of Central Motor Vehicles Rules 1989, a Note: (i) (i) Cover Notes insuring Motor Vehicles are to be issued only in Form Form Section 6 6 of of the the India India Motor Motor Tariff) Tariff). .
GENERAL REGULATION S S GR.23 GENERAL REGULATION DESCRIPTION DESCRIPTION GR.23 Certificate issued only in FORM (Refer Certificate of of Insurance FORM 51 Section 6 6 of Insurance : : A Certificate of Insurance for a Motor Vehicle is to be 51 in terms of Rule 141 of Central Motor Vehicle Rules 1989. of the Refer Section the India India Motor Motor Tariff) Tariff). . GR.24. GR.24. Cancellation the insured seven days notice of cancellation by recorded delivery to the insured s last known address and the insurer will refund to the insured the pro-rata premium for the balance period of the policy. (b) cancellation and the insurer will be entitled to retain premium on short period scale of rates for the period for which the cover has been in existence prior to the cancellation of the policy. The balance premium, if any, will be refundable to the insured. Refund of premium will be subject to: i) there being no claim under the policy, and ii) the retention of minimum premium as specified in the Tariff. (c ) A policy can be cancelled only after ensuring that the vehicle is insured elsewhere, at least for Liability Only cover and after surrender of the original Certificate of Insurance for cancellation. (d) Insurer recorded Cancellation of of Insurance Insurance (a) A policy may be cancelled by the insurer by sending to (b) A policy may be cancelled at the option of the insured with seven days notice of Insurer should recorded delivery should inform delivery about inform the about such the Regional such cancellation Regional Transport cancellation of Transport Authority of insurance Authority (RTA) (RTA) concerned concerned by by insurance
GENERAL REGULATION S S GR. 36 (A) GENERAL REGULATION DESCRIPTION DESCRIPTION Compulsory Compulsory Personal Personal Accident Accident Cover Cover for for Owner Owner- -Driver Driver Must have Driving Licence of same class of Vehicle Whilst Driving including mounting/dismounting, or travelling as co Driver. Owns more than one vehicle PA cover for only one vehicle. In event of an accident connected with the vehicle or whilst driving, mounting or dismounting or travelling as co driver causing death or bodily injury Death & Permanent Total Disablement : 100,000/- ( Two wheelers) 200,000/- (Private Cars & Commercial Vehicles) Permanent Total Disablement : Loss of both limbs, sight of both eyes, or Loss of one limb and sight of one eye : 100 % Loss of one limb or sight of one eye- 50% GR. 36 (B) Optional Optional Personal Personal Accident Accident Cover Cover for for persons persons other other than than owner owner- -driver driver IMT 15- Private Cars, 3 Wheeled vehicles rated as Private Car and Two wheelers insured, named person (authorized carrying capacity), IMT 16- unnamed passengers (authorized carrying capacity), IMT 17 -Cover can be given to paid Drivers, cleaners, conductors for all classes of vehicle
LEGAL PROVISIONS LEGAL PROVISIONS The Motor Vehicles Act, 1939 The Motor Vehicles Act, 1988 Effective from 1st July 1989 Deals exclusively with Third Party Insurance : Chapter X ( Sec. 140 to 144) : Liability without Fault Chapter XI ( Sec. 145 to 164 ) : Insurance of Motor Vehicles against Third Party Risks Chapter XII (Sec. 165 to 176) : Claims Tribunals Definitions ( Sec. 2) Driving Licence ( Sec. 3 to 15) Permit ( Sec. 66 to 87)
In respect of death/bodily injury of third party No limit stipulated. In respect of third party property damage Rs 6000/- . Our policies provide higher limit of indemnity for TPPD. If higher indemnity limit not required discount will be given on TP premium.
Following TPPD cover is inbuilt in motor policies. If Cover is to be restricted to statutory limit of Rs 6000/- discount as per following table will be allowed: Type of Vehicle Private Car Two Wheeler Three Wheeler & Taxi Commercial Veh. TPPD cover Rs 750000/- Rs 100000/- Rs 750000/- Discount Rs 100/- Rs 50/- Rs 150/- Rs 750000/- Rs 200/-
INSURANCE OF MOTOR VEHICLES AGAINST THIRD PARTY RISKS Sec.145 of MV Act,1988 Few of the relevant definitions are as follows:- Authorised Insurer Carrying on General insurance business in India under GIBNA, 1972. Liability The term liability includes no fault liability. Policy of Insurance Expression includes certificate of insurance. Property Includes goods carried in the motor vehicle, roads, bridges, culverts, causeways, trees, posts and milestones. Third Party Includes the government Sec. 145(g) Sec.146 of the MV ACT,1988 Necessity of insurance against Third Party risk No person shall use, except as a passenger, or cause or allow any other person to use, a motor vehicle in a public place, unless there is in force in relation to the use of the vehicle, a policy of insurance complying with the provisions of chapter-XI of the Act.
MOTOR VEHICLE & PUBLIC PLACE Vehicle carries or meant to carry dangerous or hazardous goods Additional policy of insurance under the Public Liability Insurance Act, 1991. Sec.2(34) of MV Act, 1988 Public Place Road, Street, way or other place, whether a through fare or not, to which the public have a right of access Covers even places of private ownership where members of public have access whether free or controlled Accident in garage in the process of reversing a tractor Road inside the gate of the secretariat- considered as Public Place. Sec.2(28) of MV Act, 1988 MotorVehicle means any mechanically propelled vehicle adopted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source. Violation of Sec. 146 No insurance Punishable u/s 196 Upto three months imprisonment or with fine upto Rs. 1,000, or with both. Compulsory Insurance not applicable to vehicle owned by Central Government or State Government and used for government purposes.
IMPORTANT DEFINITIONS Sec.2 (48) Unladen weight weight of the vehicle including all equipment ordinarily used with the vehicle when working. Sec.2 (15) Gross Vehicle weight total weight of the vehicle and load certified and registered by the registering authority as permissible for that vehicle. Sec.2 (28) Motor Vehicle or vehicle means any mechanically propelled vehicle adopted for use upon roads. Sec.2 (9) Driver Includes the person who acts as a steersman of the drawn vehicle. Sec.2 (10) Driving Licence License issued by a competent authority authorizing the person to drive a motor vehicle of any specified class or description. Sec.2(19) Learner s Licence License issued by a competent authority authorizing the person to drive a motor vehicle as a learner.
IMPORTANT DEFINITIONS Sec.2 (16) Heavy Goods Vehicle Goods carriage the gross vehicle weight of which exceeds 12,000 kgs. Tractor or road roller the unladen weight of which exceeds 12,000 kgs. Sec.2 (17) Heavy passenger motor vehicle Public service or private service vehicle or educational institutional or omni-bus the gross vehicle weight of which exceeds 12,000 kgs Motor car the unladen weight of which exceeds 12,000 kgs. Sec.2 (21) Light motor vehicle Transport vehicle or omni-bus the gross vehicle weight of which does not exceeds 7,500 kgs. Motor car or tractor or road roller the unladen weight of which does not exceeds 7,500 kgs. Sec.2 (23) Medium goods vehicle Any goods carriage other than a light motor vehicle or a heavy goods vehicle. Sec.2 (24) Medium passenger motor vehicle Other than a motor cycle, invalid carriage, light motor vehicle or heavy passenger motor vehicle.
IMPORTANT DEFINITIONS Sec.2 (30) Owner In whose name a motor vehicle stands registered In case of minor, the guardian of such minor In case of hire-purchase, lease or an agreement of hypothecation, the person in possession of the vehicle. Sec.2 (31) Permit Document issued by the authority authorizing the use of a motor vehicle as a transport vehicle. Sec.2 (39) Semi-trailer Vehicle not mechanically propelled (other than a trailer), intended to be connected to a motor vehicle, portion of which is superimposed on and a part of whose weight is borne by, that motor vehicle. Sec.2 (46) Trailer Any vehicle, other than a semi-trailer and a side car, drawn or intended to be drawn by a motor vehicle. Sec.2 (49) Weight The total weight transmitted for the time being by the wheels of a vehicle to the surface on which the vehicle rests.
DRIVING LICENCE The Driver & His License The policies of motor vehicle insurance usually describe the driver as a person engaged in driving. The motor insurance policies, in relation to third parties emphasise two requisite in particular, i.e. the person engaged in driving a vehicle must be a duly licensed driver and must not be disqualified for holding a driving license. Sec.3 Necessity for driving license No person shall drive a motor vehicle in any public place unless he holds an effective driving license. Sec.4 Age Limit Minimum age eighteen years Sixteen years for motor cycle with engine capacity not exceeding 50 cc Twenty years for transport vehicle. Sec. 6 Restriction on the holding of second licence for the same type of vehicle
DRIVING LICENCE Sec. 7 No learner s licence for transport vehicle unless the person has held DL to drive LMV for at least one year. Sec.8 Grant of learner s licence Application to authority where applicant ordinarily resides or carries on business, or where the driving training school is situated. Sec.9 Grant of DL Refusal in case of habitual criminal or drunkard,habitual addict to any narcotic drug or psychotropic substance. Sec.13 DL or LDL effective throughout India. Sec.14 Learner s licence effective for six months from the date of issue DL to drive transport vehicle effective for three years DL to drive transport vehicle carrying hazardous goods effective for one year and for renewal driver has to undergo one day refresher course. Sec.15 Renewal DL Application within thirty days
PERMIT Sec. 66 (Chapter V) Control of Transport Vehicles-- Necessity for Permits Owner cannot ply the vehicle off the route even if it is not actually carrying any passenger . Object is to ensure safety of passengers No necessity of permit when a road or place is not a publicplace or a highway . Whether permit is required before granting registration ? Authorizing the use of the vehicle in a particular place as per the manner of use. Permit necessary for all commercial vehicles (passenger as well as goods vehicle) Stage carriage permit holder may be authorised to use the vehicle as a goods carriage either when carrying passengers or not. Drawing of trailer Goods carriage permit.
WHERE PERMIT NOT REQUIRED Permit not necessary for the following vehicles: Transport vehicle owned by Central or State Government and used for Government purposes,Transport vehicle owned by a Local authoritry or under contract with a Local authority and used solely for road cleansing,road watering or conservancy purposes. For police, fire brigade or ambulance purposes. Used solely for the conveyance of corpses and the mourners accompanying the corpses. Used for towing a disabled vehicle. Used to remove goods from disbaled vehicle to a place of safety. Used for any other public purposes prescribed by State Govt. Goods vehicle with GVW not exceeding 3000 kilograms. Purchased in one state and proceeding to another state. Diverting through another route due to flood, earthquake etc.
OTHER PROVISIONS RELATING TO PERMIT Sec.67--Application for permit RTO of the region in which it is proposed to use the vehicle Vehicle to be used in two or more regions If the area in each region is approximately equal, then application to the authority where the vehicle will be kept. Sec.81 Duration and renewal of permits Effective for five years Renewal application to be made not less than fifteen days before the date of expiry. Sec.82 Transfer of permit In case of death of permit holder, person succeeding to the possession of vehicle may apply for transfer within thirty days of death He can use the permit for three months as if it had been granted to himself. Sec.83 Replacement of vehicles Permit holder may seek permission for replacement of vehicle of same nature. Sec.87 Temporary Permit Limited period not exceeding four months.
DUTY OF DRIVER AND OWNER Sec.133 Duty of vehicle owner to give information. The vehicle owner shall on demand by a police officer, furnish the name and address of the driver and conductor along with licence details etc. Police can serve notice on the owner u/s 133 for required information in respect to offences connected with the violations of any provisions of the M.V.Act. Sec.134 Duty of driver in case of accident and injury To take all reasonable steps to secure medical attention for the injured persons To give information to Police officer on demand To report the circumstances of the occurrence within twenty-four hours at the nearest police station. Sec.134(C) The driver/owner shall furnish the following information in writing to Insurance company: Policy details, Date of accident with time and place, Particulars of deceased/ injured,Nameof driver and licence details.
CHAPTER X CHAPTER X Liability Without Fault in certain cases Liability Without Fault in certain cases Provision u/s 140 is benevolent one and intended to offer prompt financial relief to the victim or the L.Rs. of the victim. Section does not contemplate filing of separate application No obligation cast on the claimants to prove the fault of driver or owner Only occurence of accident and death/injury in the accident is to be proved. Compensation is fixed Rs.50,000/- for death and Rs.25,000/- for permanent disability defined u/s 142 of the M. V. Act. Filing of medical certificate issued by private doctor about leg fracture No ground for rejection of NFL claim Court need not go to further details while considering NFL application. Collision of motor vehicle with train Jurisdiction and powers of the Tribunal is not ousted Use of the motor vehicle that creates the cause of action for a claim u/s 140. Detailed enquiry not contemplated Prima facie case required.
Self Negligence The victim is solely responsible for the cause of accident. Contributory Negligence The victim has contributed to the cause of accident. Composite Negligence Where the injury is caused by the wrongful act of two parties.
Employers Liability for compensation : Personal, physical Injury is caused to an employee by an accident arising out of and in course of his employment. Connection between accident and employment Arising out of employment - relationship between accident and employment. During Course of Employment Employer shall not be liable for Total / partial disability for less than three days. Directly attributable to Under influence of drink or Drugs. Willful disobedience. Willful removal or disregard of the safety measures . (A) (B)
As As per per Sec 50 PTD Maximum Rs Permanent For A A percentage Sec. . ( (4 4) )- - 50 % % of PTD. .) ) to Maximum monthly Rs. . 4000 Permanent partial For Injury percentage of of monthly to be monthly wages 4000 to partial disablement Injury specified of loss monthly wages be multiplied to Rs wages ( ( Incase multiplied by wages to Rs. . 8000 disablement: : specified in loss of Incase of the relevant to be Per Month of death age wise be considered Month vide death ) ) and wise factor considered is is Rs vide Notification and 60 factor given Rs. . 4000 Dated 31 60 % % of given in 4000 P P. .M M. . increased 31/ /05 of wages in schedule increased from 05/ /2010 wages ( ( in schedule IV 2010 . . in case IV. . case of from of by the relevant age 8000 Per Notification Dated in part of earning part II II schedule earning ( ( or schedule I I Schedule or Injury) Schedule- - as given Injury) as given in in the the schedule schedule. . For Such Practitioner For Injury Such percentage Practitioner. . Injury not percentage of not specified of loss specified in loss of in part of earning part II II schedule earning capacity schedule I I Schedule capacity as Schedule- - as assessed assessed by by qualified qualified medical medical Temporary Half disablement Temporary disablement Half Monthly disablement or disablement ( ( Total Monthly Payment or 5 5 year Total / / partial) of 25 year which partial) resulting of the ever is is less resulting from monthly salary from Injury salary up Injury : : to the Payment of 25 % % of the monthly less. . up to the period period of of which ever If If it it is is less disablement than day Section Oriental date less than 28 days day from Section 4 4A A - - Compensation Oriental Ins date of than 28 stretches even days- - Half from the Compensation to Ins. . Co of Award 28 days Half monthly the date Co. . Ltd Award days- - After even longer monthly payment date of Ltd. . vs After the longer than payment which of disablement to be vs. . Siby expiry of which shall be paid Siby George of waiting as per shall be paid when George & & Ors the expiry than as waiting period per below be payable when due Ors. . [Civil period of afterwards. . If If it it is is more payable on due and [Civil Appeal of 3 3 days on the for default Nos. . 5669 days . . In the sixteenth default The 5669 of In case more sixteenth case disablement stretches than 28 below afterwards disablement . . and penalty Appeal Nos penalty for The 2012] ] of 2012
Insurers duty bound to satisfy the award in respect of liability. No sum shall be payable unless notice on Insurer is served and made party to the proceedings Insurer can defend only on the grounds such as That there is a breach of specified condition of the policy - A condition excluding the use of vehicle for hire or reward - for organised racing or speed testing - violation of permit - A condition excluding driving by a person not duly That the policy is void on the ground that it was obtained by non- disclosure of material facts/ representation of fact which was false. licenced / disqualified .
No DL Date of accident not within the currency of DL DL not effective for the class of vehicle Fake DL Renewal of Fake DL Learner s License-Not complying with the requirements of Rule 3 of THE CENTRAL MOTOR VEHICLES RULES, 1989
Section transfer of liability part- in case of third party risk. Section officer to submit a report(Form 54 as per rule 150 CMVR) to the concerned Tribunal and Insurance company within thirty days of intimation of accident- Report can be treated as claim petition by tribunal. Section furnish to the person who alleges that he is entitled to claim compensation all such particulars in such form and within such time as the central Government may prescribe. Section not known in spite of reasonable effort Fixed sum of Rs.25,000/- for death and Rs.12,500/- for grievous hurt. Section and Run Solatium Fund established by Central Govt. Administered by GIC(Now with NIA) Enquiry vested with District Collector. Section 157 157 Transfer of certificate of insurance Deemed Section 158 158( (6 6) ) Statutory duty on the police investigating Section 160 160- - Duty of police officer and registering authority to Section 161 161- - Hit and run motor accident Identity of vehicle Section 163 163- - Scheme for payment of compensation under Hit
APPLICATION FOR COMPENSATION Section representatives in case of death, owner of TP property, any agent duly authorised. Right vests in legal representatives and not in dependants alone. Jurisdiction at four places either to the Claims Tribunal having jurisdiction over the area in which the accident occurred or to the Claims Tribunal within the local limits of whose jurisdiction the claimant resides or carries on business or within the local limits of whose jurisdiction the defendant resides Section 166 166 Application for compensation by injured, Legal
PROCEDURE Section 167- Option to claim either under MACT or under WC. Nature of proceedings are different---Issues are different Computation of compensation is different. Section 168-- Award of the Claims Tribunal Notice to Insurer. Summary proceedings Opportunity of hearing. Just compensation Delivery of award copies within fifteen days. Satisfaction of award within thirty days. Deduction of tax at source on the interest awarded. No power of Review except arithmatical or clerical error. Apportionment of compensation and Fixed deposit. Section 169-- Procedure and powers of claims tribunal. Section 169(2) Enforcing the attendance of witnesses and compelling the discovery and production of documents and material objects.
OTHER PROCEDURES Section 170 Right of Insurer to contest the claim on all or any of the grounds that are available to the vehicle owner. Owner fails to contest or colludes with claimants. Petition u/s 170 to be filed in each and every case. Safeguards the interests of insurer. Section 171 Simple interest may be awarded on the compensation awarded from such date not earlier to the date of claim. Section 172 Award of compensatory costs in certain cases not exceeding one thousand rupees under the following circumstances: Policy obtained by misrepresentation or false claim made or vexatious defence by respondents.. Power of criminal prosecution of Tribunal.
METHOD OF COMPUTATION OF COMPENSATION 29
SECTION 163A OF THE MOTOR VEHICLES ACT, 1988 SECTION 163A OF THE MOTOR VEHICLES ACT, 1988 In exercise of the powers conferred by sub-section (3) of section 163A of the Motor Vehicles In the Motor Vehicles Act, 1988, for the Second Schedule, the following Schedule shall be substituted namely: SCHEDULE FOR COMPENSATION FOR THIRD PARTY FATAL ACCIDENTS/INJURY CASES CLAIMS 1. (a) Fatal Accidents: Compensation payable in case of Death shall be five lakh rupees. (b) Accidents resulting in permanent disability: Compensation payable shall be = [Rs. 5,00,000/- percentage disability as per Schedule I of the Employee s Compensation Act, 1923 (8 of 1923)] : Provided that the minimum compensation in case of permanent disability of any kind shall not be less than fifty thousand rupees. (c) Accidents resulting in minor injury: A fixed compensation of twenty five thousand rupees shall be payable: 2. On and from the date of 1st day of January, 2019 the amount of compensation specified in the clauses (a) to (c) of paragraph (1) shall stand increased by 5 per cent annually . 3. This notification shall come into form on the date of its publication in the Official Gazette ( 22.05.2018) .
National Ins. Co. Ltd. vs. Pranay Sheti & Ors., SLP (CIVIL) NO. 25590 OF 2014, 5 Judge bench decision dt. 31.10.2017 :Perceiving cleavage of opinion between two 3 Judge Bench decision of Hon ble Supreme Court in Reshma Kumari Ors National the matter to a larger bench. The Hon ble Supreme Court constituted a 5 Judge bench and by its Judgment dt. 31.10.2017 , it analysed earlier decisions and proceed to conclude the following : Deduction for Personal Expenses Reshma Rajesh & & Kumari & & Ors Ors. . Vs National Insurance Ors. . Vs Rajbir & & Ors Insurance Co Vs. . Madaan Ors. . , , ( (2013 Co. . Ltd Madaan Mohan 2013) )9 9SCC Ltd. . vs Mohan & & Another, SCC54 vs. . Pushpa Another, ( (2013 54 , a two-judge bench of Apex Court in Pushpa & & Ors 2013) )9 9SCC SCC65 65 and Rajesh Vs. . Rajbir Ors. . , , ( (2015 2015) )9 9SCC SCC166 166 has referred Bachelor Married Dependants only parents if other like younger siblings also dependant Dependants 2 to 3 4 to 6 more than 6
Future Prospects Multiplier Age Band 15-20 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 Multiplier 18 18 17 16 15 14 13 11 9 7 5 For Permanent job (salaried) Below 40 years 40 to 50 years 51-60 years Note: New addition to Sarla Verma for above age of 50 from Nil to 15% Note: For those salaried on Permanent job actual salary less tax and for Self employed established income less tax component. Add 50% 30% 15% For Self Employed Below 40years 40 to 50 years 51-60 years Add 40% 25% 10% General & Non Pecuniary Damages Head Amount (Rs.) Loss of Estate 15,000 with 10% increase every 3 years Loss of Consortium 40,000 Funeral Expenses 15,000 The calculation for just compensation shall be done as per this landmark Judgment.
Practice: Practice: Disability certificate issued by Medical Board : Earning X %of disability. Evidence by doctor : same as above or as thought proper by Court. No such evidence : Lump sum depending on nature of Injury Medical expenses : Necessarily incurred unless reimbursed by some other authority. Raj Kumar vs. Ajay Kumar & Anr. Civil Appeal No. 8981 of 2010 (Arising out of SLP (C) No. 10383 of 2007) -The heads under which compensation is awarded in personal injury cases are the following: Pecuniary damages (Special Damages) i. Expenses relating to treatment, hospitalization, medicines, transportation, nourishing food and miscellaneous expenditure. ii. Loss of earnings (and other gains) which the injured would have made had he not been injured, comprising: (a) Loss of earning during the period of treatment; (b) Loss of future earnings on account of permanent disability. iii. Future medical expenses. Non-pecuniary damages (General Damages) iv. Damages for pain, suffering and trauma as a consequence of the injuries. v. Loss of amenities (and/or loss of prospects of marriage). Loss of expectation of life (shortening of normal longevity). vi. 33
279 Whoever drives any vehicle, or rides, on any public way in a manner so rash or negligent as to endanger human life, or to be likely to cause hurt or injury to any other person, shall be punished with imprisonment of either description for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both. Punishment Imprisonment for 6 months, or fine of 1,000 rupees, or both Cognizable Bailable Triable compoundable. 304A IPC CAUSING DEATH BY NEGLIGENCE Whoever causes the death of any person by doing any rash or negligent act not amounting to culpable homicide, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both. Punishment Imprisonment for 2 years, or fine, or both Cognizable Bailable Triable by Magistrate of the first class Non-compoundable. 279 IPC IPC: : RASH RASH DRIVING DRIVING OR OR RIDING RIDING ON ON A A PUBLIC PUBLIC WAY WAY CLASSIFICATION CLASSIFICATION OF OF OFFENCE OFFENCE by any Magistrate Non- 304A IPC CAUSING DEATH BY NEGLIGENCE OF OFFENCE CLASSIFICATION CLASSIFICATION OF OFFENCE
337 Whoever causes hurt to any person by doing any act so rashly or negligently as to endanger human life, or the personal safety of others, shall be punished with imprisonment of either description for a term which may extend to six months, or with fine which may extend to five 337IPC IPC. . Causing Causing hurt hurt by by act act endangering endangering life life or or personal personal safety safety of of others others hundred rupees, or with both. Punishment Imprisonment for 6 months, or fine of 500 rupees, or both Cognizable Bailable Triable by any Magistrate Compoundable by the person to whom hurt is caused with the permission of the court. 338 of Whoever causes grievous hurt to any person to doing any act so rashly or negligently as to endanger human life, or the personal safety of others, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine which may extend to one thousand rupees, or with both. Punishment Imprisonment for 2 years, or fine of 1,000 rupees, or both Cognizable Bailable Triable by any Magistrate Compoundable by the person to whom hurt is caused with the permission of the court. CLASSIFICATION CLASSIFICATION OF OF OFFENCE OFFENCE 338 IPC of others IPC Causing others Causing grievous grievous hurt hurt by by act act endangering endangering life life or or personal personal safety safety CLASSIFICATION CLASSIFICATION OF OF OFFENCE OFFENCE
427 Whoever commits mischief and thereby causes loss or damage to the amount of fifty rupees or upwards, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both. 427. . Mischief Mischief causing causing damage damage to to the the amount amount of of fifty fifty rupees rupees Punishment Imprisonment for 2 years, or fine, or both Non- cognizable Bailable Triable by any Magistrate Compoundable by the person to whom the loss or damage is caused. 181 - -Whoever drives a motor vehicle in 4 4 shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees, or with both. 183 motor vehicle in 112 rupees, or, if having been previously convicted of an offence under this sub-section is again convicted of an offence under this sub-section, with fine which may extend to one thousand rupees. CLASSIFICATION CLASSIFICATION OF OF OFFENCE OFFENCE 181- -MV MV ACT ACT. . Driving Driving vehicles vehicles in in contravention in contravention contravention of contravention of of section of section section 3 3 or section 3 3 or or section or section section 4 4. . section ACT- - Driving in contravention 112 shall be punishable with fine which may extend to four hundred 183MV MV ACT Driving at contravention of at excessive excessive speed, of the speed, etc the speed etc. . (1) Whoever drives a speed limits limits referred referred to to in in section section
184 in a manner which is dangerous to the public, having regard to all the circumstances of the case including the nature, condition and use of the place where the vehicle is driven and the amount of traffic which actually is at the time or which might reasonably be expected to be in the place, 184. . Driving Driving dangerously dangerously Whoever drives a motor vehicle at a speed or shall be punishable for the first offence with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees, and for any second or subsequent offence with imprisonment for a term which may extend to two years, or with fine which may extend to two thousand rupees, or with both. 185 drugs (a) has, in his blood, alcohol exceeding 30 mg. Per 100 ml. of blood detected in a test by a breath analyser, or (b) is under the influence of a drug to such an extent as to be incapable of exercising proper control over the vehicle shall be punishable for the first offence with imprisonment for a term which may extend to six months, or with fine which may extend to two thousand rupees, or with both; and for a second or subsequent offence, if committed within three years of the commission of the previous similar offence, with 185. . Driving drugs. . Whoever, while driving, or attempting to drive, a motor vehicle Driving by by a a drunken drunken person person or or by by a a person person under under the the influence influence of of
187 comply with the provisions of clause (c) of sub-section (1) of section 132 or of section 133 or section 134 shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees, or with both or, if having been previously 187. . Punishment Punishment for for offence offence relating relating to to accident accident. . Whoever fails to convicted of an offence under this section, he is again convicted of an offence under this section, with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both. 192 vehicle or causes or allow a motor vehicle to be used in contravention of the provisions of sub-section (1) of section 66 or in contravention of any condition of a permit relating to the route on which or the area in which or the purpose for which the vehicle may be used, shall be punishable for the first offence with a fine which may extend to five thousand rupees but shall not be less than two thousand rupees and for any subsequent offence with imprisonment which may extend to one year but shall not be less than three months or with fine which may extend to ten thousand rupees but shall not be less than five thousand rupees or with both : Provided that the Court may for reasons to be recorded, impose a lesser punishment. 192- -A A. . Using Using vehicles vehicles without without permit permit. . (1) Whoever drives a motor
FIR negligent driving, name of driver [if given], place, persons died / injured, etc. Seizure owner, driving license particulars & name of driver, validity /authorization to drive class of vehicle, route permit & validity, insurance particulars. MVI presence /absence of rash /negligent driving on part of accused driver, whether any mechanical failure, damage to vehicle, etc. [technical opinion] Inquest near ones regarding cause of death, etc, duly witnessed. PM /internal], probable cause of death, probable time of death, etc. Injury injuries, cause & nature of injuries [simple / grievous], time of injuries. Charge accused driver, with name & address, section of law, witnesses, documents seized, etc. Final involvement of vehicle & identity of driver Copies of documents like Insurance Policy, Driving license, Permit, Fitness certificate FIR Commission of motor vehicle accident, vehicle involved, rash & 1. 1. Seizure List List: : Vehicle number & description, registration particulars & 2. 2. MVI Report Report: : Spot map, vehicle particulars, probable cause of accident, 3. 3. Inquest Report Report: : Position of dead body with surroundings, opinion of 4. 4. PM Report Report: : Name/address of person dead, Age, injuries [external 5. 5. Injury Report Report /Wound /Wound certificate certificate: : Name & address of injured, details of 6. 6. Charge Sheet Sheet: : Prima-facie, offence has been made out against the 7. 7. Final Report Report : : If no clue is available regarding 8.
When the dealing officer is satisfied that no defense under section 149(2) Motor Vehicle Act, 1988 is available and the accident and involvement of insured vehicle is established and prima-facie negligence is proved, the most prudent way to move forward is to look for compromise settlement through various ADRs. Section 89 of Code of Civil Procedure provides that: Arbitration and conciliation provisions of Arbitration and Conciliation Act, 1996 Settlement through Lok Adalat as per Section 20 of Legal Services Authorities Act,1987. For mediation, the Court shall effect compromise settlement between the parties and shall follow such procedure as may be prescribed. Section 22-B of Legal Services Authorities Act, for settlement in Permanent Lok Adalat. Common Mechanism for Compromise Settlement of Third Party Cases.
173 any person aggrieved by an award of a Claims Tribunal may, within ninety days from the date of the award, prefer an appeal to the High Court: Provided that no appeal by the person who is required to pay any amount in terms of such award shall be entertained by the High Court, unless he has deposited with it twenty-five thousand rupees or fifty per cent. of the amount so awarded, whichever is less, in the manner directed by the High Court: Provided further that the High Court may entertain the appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time. (2) No appeal shall lie against any award of a Claims Tribunal if the amount in dispute in the appeal is less than ten thousand rupees. 173. . Appeals Appeals. . (1) Subject to the provisions of sub-section (2),
The interlocutory orders against no appeal, review or revision lies, if required to be challenged then the Constitutional remedy under Article 226/227 to be invoked. ARTICLE ARTICLE 226 226- - POWER OF HIGH COURTS TO ISSUE CERTAIN WRITS ARTICLE HIGH COURT ARTICLE 227 227- -POWER OF SUPERINTENDENCE OVER ALL COURTS BY THE Further once the right of statutory appeal under section 173 MV Act is exhausted, if the order requires further challenge, then the only remedy left is to invoke the extra-ordinary jurisdiction of Supreme Court by filing Special leave petition under Art. 136. ARTICLE (1)Notwithstanding anything in this chapter, the Supreme Court may, in its discretion grant special leave to appeal from any judgment, decree, determination, sentence or order in any cause or matter passed or made by any Court or tribunal in the territory of India. (2) Nothing in Clause (1) shall apply to any judgment, determination, sentence or order passed or made by any Court or Tribunal constituted by or under any law relating to the Armed Forces. ARTICLE 136 136 SPECIAL LEAVE TO APPEAL BY SUPREME COURT-
The Motor Vehicle (Amendment) Act, 2019 The Motor Vehicle (Amendment) Act, 2019 Salient Provisions relevant to Third party Liability Salient Provisions relevant to Third party Liability Prepared By - Jai Verma Assistant Manager (Legal) & Advocate CRO-I, Kolkata
Authorisation Transport Vehicle Valid for 3 Years Authorisation Old Provision Old Provision New Provision Valid for 5 Years New Provision Transport vehicle carrying goods of dangerous or hazardous nature Any Other Licence Valid for 1 Year Valid for 3 Years Valid for 20 Years or till the person attains the age of 50 Yrs., whichever is earlier Age of the licence holder Below 30 Yrs. Validity Till the age of 40 Yrs. Valid for 10 Yrs. Attained 30 Yrs. & Below 50 Yrs. Attained 50 Yrs. & below 55 Yrs. If the person has attained the age of 50 Yrs.- Valid for 5 Years Till the age of 60 Yrs. Attained 55 Yrs. Valid for 5 Years
Old Provision where the application for the renewal of a licence is made more than thirty days after the date of its expiry, the driving licence shall be renewed with effect from the date of its renewal Old Provision New Provision where the application for the renewal of a licence is made either one year prior to date of its expiry or within one year after the date of its expiry, the driving licence shall be renewed with effect from the date of its renewal New Provision The grace period of 30 days for every driving licence has been omitted by the Amendment Act.
Chapter CASES Section compensation Schedule deleted A A new Liability Chapter X X dealing CASES from Section 163 compensation on Schedule II II as deleted . . new Section Liability and dealing with from Section 163A A- - Special with LIABILITY Section 140 Special provisions on structured as amended LIABILITY WITHOUT 140 to provisions as structured formula amended by WITHOUT FAULT 144 is is deleted FAULT IN IN CERTAIN CERTAIN to 144 deleted . . as to basis along dt. . 22 to payment along with 22. .05 payment of of formula basis by Notification with Notification dt 05. .2018 2018 is is Section 164 and the 164 under the amount under Chapter amount received Chapter XI received is is full XI is is introduced full & & final introduced on final on No No Fault Fault Old Section 163A Death : R. 5,00,000 /- Old Provision Provision New Section 164 Death : Rs. 5,00,000 /- New Provision Provision Grievous Hurt : Rs. 2,50,000 /- Permanent Disability : Rs. 5,00,000/- percentage disability as per Schedule I of the Employee s Compensation Act, 1923 (8 of 1923)] : Provided that the minimum compensation in case of permanent disability of any kind shall not be less than fifty thousand rupees. Minor Injury : Rs. 25,000 /- None
Section 145 Old Provision (e) property includes goods carried in the motor vehicle, roads, causeways, trees, posts and mile-stones Section 145 Definitions Definitions New Provision (g) property includes roads, bridges, culverts, causeways, trees, posts, milestones and baggage of passengers and goods carried in any motor vehicle (i) thirdparty includes the Government, the driver and any other co-worker on a transport vehicle. for insurance bridges, culverts, (g) thirdparty includes the Government. Section 146 i.e. Necessity risk Necessity for as it it is is. . insurance against against third third party party risk is is kept kept as
Section 147 Old Provision Limits of liability : Section 147 Requirements of policies and limits of liability New Provision Notwithstanding anything contained under any other law for the time being in force, for the purposes of third party insurance related to either death of a person or grievous hurt to a person, prescribe a base premium and the liability of an insurer in relation to such premium for an insurance policy under sub-section (1) in consultation with the Insurance Regulatory and Development Authority. A policy of Insurance issued before the commencement of the Motor Vehicles (Amendment) Act, 2019 shall be continued on the existing terms under the contract and the provisions of this Act shall apply as if this Act had not been amended by the said Act. The provision with respect to covering liability under W.C. Act for named employees and provision of non-coverage of contractual liability is deleted Requirements of policies and limits of liability Injury/Death- Unlimited the Central Government shall TPPD- Rs. 6,000 /-
A new Section 149 is introduced company and procedure therefore (1) The insurance company shall, upon receiving information of the accident, either from claimant or through accident information report or otherwise, designate an officer to settle the claims relating to such accident. A new Section 149 is introduced Settlement company and procedure therefore Settlement by insurance by insurance (2) An officer designated by the insurance company for processing the settlement of claim of compensation may make an offer to the claimant for settlement before the Claims Tribunal giving such details, within thirty days and after following such procedure as may be prescribed by the Central Government. (3) If, the claimant to whom the offer is made under sub-section (2), (a) accepts such offer, (i) the Claims Tribunal shall make a record of such settlement, and such claim shall be deemed to be settled by consent; and (ii) the payment shall be made by the insurance company within a maximum period of thirty days from the date of receipt of such record of settlement; (b) rejects such offer, a date of hearing shall be fixed by the Claims Tribunal to adjudicate such claim on merits.
