Compensation For Road Accident Victims To Increase Ten Fold — Revised First Time In Two Decades

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The minimum compensation for road accident victims will soon increase by ten-fold. The government has decided to increase the compensation amount payable to such victims, irrespective of their income or age criteria.

Minimum Compensation For Road Accident Victims To Increase Ten-Fold; Revised First Time In 24 Years

According to TOI, this amount will be payable to the victim or they're next of kin. The compensation will be paid in case of death, permanent disability or any minor injuries.

Minimum Compensation For Road Accident Victims To Increase Ten-Fold; Revised First Time In 24 Years

The compensation amount has been revised after a period of 24 years. However, the government has left the option for people to further pursue their case with the Motor Accident Claims Tribunal (MACT). In case they feel they deserve a higher compensation.

Minimum Compensation For Road Accident Victims To Increase Ten-Fold; Revised First Time In 24 Years

As per the new norms by the government, a compensation of Rs 5 lakh will b paid in case of a fatality. While an amount between Rs 50,000 to 5 lakh will be paid for permanent disability based on the extent.

Minimum Compensation For Road Accident Victims To Increase Ten-Fold; Revised First Time In 24 Years

There will also be an annual increase of 5 percent on the compensations. This is in a bid to provide a source of quick relief for accident victims. According to sources, 1.5 lakh people die due to road accidents annually, while another 5 lakh get injured.

Minimum Compensation For Road Accident Victims To Increase Ten-Fold; Revised First Time In 24 Years

Currently, a compensation of Rs 50,000 in case of death. While the compensation for permanent disability is set at Rs 25,000 as per the ‘non-fault liability' norm.

Here the victim is not required to prove the negligence of the motor vehicle driver and is binding on insurance firms. However, all cases end up going to MACT, as no one accepts the low compensation offered.

Minimum Compensation For Road Accident Victims To Increase Ten-Fold; Revised First Time In 24 Years

The cases taken to the MACT will be provided compensation based on a structured formula. While, taking into consideration the age, income and number of dependants of the victim.

Thoughts On The Increase In Compensation For Road Accident Victims

Minimum Compensation For Road Accident Victims To Increase Ten-Fold; Revised First Time In 24 Years

Though the Motor Vehicles Act provided various amendments, it was never revised. The idea behind the revision is to reduce the number of cases. While still allowing those who want higher compensation, to go ahead with legal proceedings.

Read more on: #auto news
Story first published: Monday, May 14, 2018, 13:01 [IST]
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