More Compensation for India?s Accident Claims Thanks to Reforms

Amendments India's Motor Vehicles Act, 1988 have meant that there
will be more compensation for those making accident claims, new
reports have shown. According to the latest official statistics from
the Indian government, over 100,000 people were killed in road
accidents in India in 2006 and nearly half a million were injured.
That means one accident per minute and a fatal one every five minutes.

The plan for amendments to the Motor vehicles Act form part of a
national effort to control accidents, due to be introduced in the
coming session of parliament. They include suspending the licence of a
drunk driver on the spot for up to three months. There were around
460,000 road accidents in the country in 2006, Minister of Shipping,
Road Transport and Highways T.R. Baalu stated, killing 105,749 people
and injuring nearly 500,000. At 2000 prices, the losses due to road
accidents were Rs.550 billion (nearly $14 billion) a year, which
amounted to 3% of India's GDP, Baalu told the consultative committee
of MPs attached to his ministry.

With the amendments to the Motor Vehicles Act, 1988, "the penalties
for various traffic offences are proposed to be enhanced substantially
to make it more deterrent", Baalu said.

"We have proposed that the authorised enforcement authorities may
suspend on the spot the driving licence of a drunken driver for a
period up to three months and we are also proposing to introduce civil
liabilities of a driver by providing penalty up to Rs.5,000 if one
drives a motor vehicle in a rash or negligent manner, causing injury
to a person or damage to property."

Another amendment proposes to raise the interim compensation to
accident victims to Rs.100,000 in case of death or permanent total
disablement and to Rs.50,000 in case of permanent partial disablement,
the minister said. The claimants will be paid within three months from
the date of filing the application in the Motor Accident Claim
Tribunal (MACT) or civil court.

"We are also providing that the MACT or civil court shall try to
finally dispose off the claim for compensation within a period of two
years from the date of its filing," added Baalu.

The ministry is designing new model inspection and maintenance centres
to be set up by state governments for inspection of motor vehicle,
with the centre said to be giving financial assistance to set them up.
The government will also soon approve the Sundar Committee's proposal
to earmark at least one percent of the money generated from the cess
on diesel and petrol for a road safety fund, Baalu said, adding "the
committee's proposal for creation of an apex body, the National Road
Safety & Traffic Management Board, is also being processed at the
highest level."

The committee to look into the matter of promotion of road safety in
educational institutions through Road Safety Clubs has given its
report and a scheme costing Rs.1.2 billion during the 11th plan
(2007-2012) has been formulated and sent to the Planning Commission
for approval.

The Motor Accident Claims Tribunals have been constituted by different
State Governments, for the speedy disposal of third party claims, in
accordance with Section 110 of the M V Act 1939. Such tribunals are
presided over by a person of the rank of a District Judge or High
Court Judge. Only a nominal fee has to be paid for instituting a case
and the court fee is not based on the value of the suit.  Thus, poor
third party claimants are not prevented from making proper claims. All
third party claims for personal injury and property damage have to be
filed with the tribunals.

Sofia is an author of several articles pertaining to No Win No Fee,
Compensation Claims, Accident Claims, Personal Injury Claims and other
legal articles.