How To Claim Road Accident Compensation (Part 2) - Interim Compensation

By Source : Akosha

Published: Wednesday, July 6, 2011, 12:18 [IST]

Interim compensation on the basis of 'no fault"

If a person has died in an accident or has suffered permanent disablement, then the Act creates an obligation on the owner of the vehicle to pay an interim compensation fixed by the Act. He is not allowed to plead that he was not at fault or that the accident occurred because of the negligence of the victim. Permanent disablement means loss of sight of either eye or hearing of either ear or loss of any member or joint or permanent impairment of powers of any members or joint or permanent disfiguration of head or face.

In case of death, the amount payable is Rs.50,000 and in case of permanent disablement, road accident compensation payable is Rs.25,000. This road accident compensation cannot be reduced and is independent of the liability to pay road accident compensation amount in a claim petition. Thus, even if ultimately the claim petition is dismissed, the road accident compensation is not refundable.

However, if the award made on the claim petition is higher than the interim compensation, the interim compensation already paid will be deducted. The claimant is not required to show that the death or permanent disablement was caused due to fault or negligence of the owner; the owner is liable to pay the amount as long as death or permanent disablement was caused as a result of an accident with his vehicle. For instance, if the car was stolen and driven by a disqualified person, and that person hits someone resulting in injuries, neither the insurance company nor the owner will be liable for there was no negligence. However, if it results in the death of third party, then the owner/insurer will be liable. The road accident compensation will be awarded by the Tribunal though it is not specifically asked for in the claim petition.

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