MOTOR VEHICLES ACT, 1998

LAW OF TORTS PROJECT

DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY

VISAKHAPATNAM, A.P, INDIA

PROJECT TITLE:

SCOPE OF THE ACCIDENT CLAIMS FOR COMPENSATION UNDER M.V ACT IN

VIEW OF RELEVANT PROVISIONS ALONG WITH AMENDMENTS TO M.V ACT

SUBJECT:

LAW OF TORTS

NAME OF THE FACULTY:

Prof. (Dr.) P. SRI DEVI

NAME OF THE STUDENT:

G.SAIDEEP

ROLL NO:

18LLB077

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Acknowledgement

I would sincerely like to put forward my heartfelt appreciation to our respected Law of Torts
professor, Prof. (Dr.) P. Sri Devi for giving me a golden opportunity to take up this project
regarding ― scope of the accident claims for compensation under M.V Act in view of relevant
provisions along with amendments to M.V Act ‖. I have tried my best to collect information
about the project in various possible ways to depict clear picture about the given project topic.

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 TABLE OF CONTENTS

 INTRODUCTION………………………………………………………………….6
 OBJECT OF THE M.V ACT……………………………………………………….8
 CLAIMS TRIBUNAL UNDER M.V ACT……………………………………..….10
 CLAIMS TRIBUNAL : A SUBSTITUTE OF CIVIL COURTS FOR THE PURPOSE
OF COMPENSATION CLAIMS...............................................................................12
 COMPENSATION UNDER M.V ACT…………………………………………….16
 AWARD OF COMPENSATION IN FAVOUR OF MINOR CLAIMANTS…….18
 KEY PROVISIONS IN MOTOR VEHICLES (AMENDMENT) BILL, 2016…..19
 SUGGESTIONS…………………………………………………………………..23
 CONCLUSIONS………………………………………………………………….24
 BIBLOGRAPHY…………………………………………………………………..25

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 ABSTRACT OF THE PROJECT

India has the dubious distinction of being one of the countries with the highest number of
road accidents and the longest response time in securing first aid and medical treatment. The
terrible figure of road accidents yield a cart-load of case law, which, of course, is not an elegy on
the dead but real tribute on this threatening piece of legislation. Each case, however, bears its
own imprint which cannot be universalized. The paradoxes involved in each individual motor
accident case had posed four confounding situations, namely:
1. A section of accident victims doubly unfortunate, first in getting involved in an accident yet
not getting compensation.
2. Widespread practice of using goods vehicles for passenger traffic.
3. Procedural delays in settlement of claims
4. Duty of courts to award compensation and secure it to the advantage of those for whom it was
meant.
For the purpose of making the law for granting of compensation in Motor Accident Claims more
realistic and effective, following suggestions have been made:
1. It is to be ensured that all accident victims including victims of uninsured vehicles get
compensation.
2. Payment of Compensation to accident victims should be without delay.
3. Full amount of compensation awarded should not go directly in the hands of the victim,
instead should be deposited in fixed deposits with banks.
4. Just and Fair Compensation, in cases of out of Court Settlement must be ensured.
5. Award of compensation must be determined by applying the principle of structural
compensation formula in motor accident cases like railways (where a fixed compensation of Rs.
4.00 Lakhs is paid for loss of life) irrespective of social status and earning capacity of the victim.
6. All types of Vehicles should be regularly checked up and inspected by authorised mechanics
like checking of air pollution.

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7. Driving Licence should be allotted by following strict procedure and after considering health
and mental status of the person.
8. Entry of Animals on Public Roads should be prohibited
9. Supervision and Control of Speed of Vehicle should be ensured strictly.
10. There should be ban on plying of old vehicles.
11. Where the liability of the insurer is not disputed, the insurance companies should pay
compensation as per the standard formula developed by the decisions of the Courts.

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INTRODUCTION:

After world war second, we find that there is fast increase in the number of commercial
as well as personal vehicles in the country. There is gradual improvement in the automotive
technologies also. It is also noticed that there is greater flow of passengers and freight with the
least impediments. Due to increase in the number of vehicles and the frequency of their
movement, the road accidents have also gone up, thereby, increasing the number of victims of
road accidents. Sometimes, it is found that whole of the family has died in the road accident
leaving behind the kids only. On the other hand, it is also reported that due to road accidents
people have become permanently disable, causing a permanent loss to their earnings, sometimes
he is not in position to do any work.
The philosophy behind award of compensation as far as pain and suffering proceeds on the
footing that even though no monetary loss is occasioned because of this situation, that it is
because of the psychological aspect which the law takes cognizance of and which has been dealt
in detail in the Jhulan Rani Saha’s case 1where both the English and Indian law have been
analyzed in some detail. It was laid down by the court that it is obliged to compensate the party
to whom such pain and suffering may have been caused, to the extent that is necessary2.
Normally in India the award under the head “Pain and Suffering” is only for the injured though
in cases of death of a young child in accident, court may award compensation to the parents for
shock and loss of life of their child, also as to the consequent “Pain and Suffering”. The
Karnataka High Court has laid down that the bonds that exist between the claimant and the
deceased, if they happen to be close relatives or a spouse, cannot be ignored while assessing the
damages under the head “Pain and Suffering”. The immense mental trauma which a near relative
undergoes when shocking, distressing news is received that the person has suddenly been killed

1
Jhulan Rani Saha v. National Insurance Co. Ltd, AIR 1994 Gau. 41
2
P.K Sarkar, The Motor Vehicles Act, 1988, (2004), p.10

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and what follows thereafter even though during a short period of time, is pain and suffering of an
immensely high gravity which certainly qualifies for award of Compensation3.
Newspapers in every metro city in India give a daily report of people killed and injured in traffic
accidents. As a response to this heightened awareness, NGOs have come up in many cities to
deal with this increasing urban epidemic of death and destruction. Police departments also hold
road safety weeks, painting competitions, zero tolerance drives and demand greater powers to
fine and punish. This has gone on for the last two decades. However, the killing and the maiming
continue unabated4.
A look at some of the statistics on road safety presents a very grim picture worldwide and
especially in developing countries like India. Road fatalities now leads the list of accidental
deaths in India much more than any other such as by drowning, fire, rail or air mishaps. The
magnitude of road accidents in India is increasing at an alarming rate. About 60,000 people are
killed every year in India and top the world in the number of road fatalities. National level of
fatalities per kilometer is 0.025. The Motor Vehicle Act, 1988 was passed with a view to regulate
the law relating to matters of motor vehicles, more specifically it consolidate and amends the law
relating to motor vehicles. This Act has been amended by the Parliament from time to time in
order to take into account the frequent improvements in the road transport technology, pattern of
passengers and freight movement, development of road network in the country and particularly
the improve techniques in the motor vehicles management.

3
Angel Travels v. K.C. Naik (1991) 1 Kar. LJ 37
4
Accessed on Website, www.indiandrivingschool.com on 18.10.2010 at 2.35 p.m.

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 CHAPTER – 1
Object of the M.V Act :--
The Motor Vehicles Act, 1988 is an Act of the Parliament of India which regulates all aspects of
road transport vehicles. The Act came into force from 1 July 1989. It replaced Motor Vehicles
Act, 1939 which earlier replaced the first such enactment Motor Vehicles Act, 1914. The Act
provides in detail the legislative provisions regarding licensing of drivers/conductors, registration
of motor vehicles, control of motor vehicles through permits, special provisions relating to state
transport undertakings, traffic regulation, insurance, liability, offences and penalties, etc. For
exercising the legislative provisions of the Act, the Government of India made the Central Motor
Vehicles Rules 1989. To take care of the fast increasing number of both commercial vehicles and
personal vehicles in the country. The need for encouraging adoption of higher technology in
automotive sector. The greater flow of passenger and freight with the least impediments so that
islands of isolation are not created leading to regional or local imbalances. Concern for road
safety standards, and pollution-control measures, standards for transportation of hazardous and
explosive materials. Simplification of procedure and policy liberalization’s for private sector
operations in the road transport field. Need for effective ways of tracking down traffic offenders.
Rationalization of certain definitions with additions of certain new definitions of new types of
vehicles. Stricter procedures relating to grant of driving licences and the period of validity
thereof. Laying down of standards for the components and parts of motor vehicles. Standards for
anti-pollution control devices. Provision for issuing fitness certificates of vehicles also by the
authorized testing stations. Enabling provision for updating the system of registration marks.
Liberalized schemes for grant of stage carriage permit on non nationalized routes, all-India
Tourist permits and also national permits for goods carriages. Administration of the Solatium
Scheme by the General Insurance Corporation. Provision for enhanced compensation in cases of
“no fault liability” and in hit and run motor accidents.

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Accident claims

There is a provision to provide ₹500,000 (US$7,000) with no upper limit, as interim

relief to the family of victim of fatal accidents. The cases of road accident compensation claims
are decided in the Motor Accident Claims Tribunal.

Previous laws

The "Indian Motor Vehicles Act, 1914"was a central legislation passed and applicable
in British India. Some princely states followed suit, with local modifications. Motor vehicles
were first introduced in India towards the end of the 19th century, and the 1914 Act was the first
legislation to regulate their use. It had 18 sections, and gave local governments the responsibility
of registering and licensing vehicles and motorists, and enforcing regulations. It was replaced by
the Motor Vehicles Act, 1939, which came into force in 1940.

Amendments
Indian Motor Vehicles Acts, from 1914-2016
The "Indian Motor Vehicles Act, 1914" was amended by the "Indian Motor Vehicles
(Amendment) Act, 1920" (Act No. XXVII of 1920) passed by the Imperial Legislative Council.
It received assent from the Governor General of India on 2 September 1920. The Act amended
sections 11 and 18 of the 1914 Act.
The Act was amended again by the "Indian Motor Vehicles (Amendment) Act, 1924" (Act No.
XV of 1924). The Act received assent from the Governor General on 18 September 1924. It had
the title, "An Act further to amend the Indian Motor Vehicles Act, 1914, for certain purposes"
and amended section 11 of the 1914 Act by inserting the words "and the duration for which"
after the words "area in which" in clause (a) of subsection (2) of section 11. The motor vehicle
act has again been amended in 2016.

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Indian Motor Vehicles Act,2017
This will be a significant upgrade to the motor vehicle laws. It envisages body cams on traffic
cops and RTO officials to check corruption and 7 year imprisonment instead of current 2 years
for drink-driving deaths, mandatory 3rd party insurance for all vehicles, and stiffer penalties for
traffic violations to reduce the accident rates.

Claims Tribunal Under Motor Vehicles act:

New provisions in Motor Vehicles Act, do not create any new liability, and the liability is
still based on law of tort and enactments like the Fatal Accidents Act. The position on this point
was critically explained in Oriental Fire & General Insurance Co. v. Kamal Kamini5 : “The
object of this group of sections 110 to 110F of the (1939) Act is to supply a cheap and
expeditious mode of enforcing liability arising out of claim for compensation in respect of
accident involving the death, or bodily injury to, persons arising out of the use of motor vehicles,
or damage to any property of a third party so arising, or both as referred to in Section 110. Prior
to the constitution of the Tribunal, compensation could be claimed by institution of suits for
damages only through the medium of the Civil Court on payment of ad valorem court fee. This
group of sections furnishes a self-contained Code that the claims can be lodged on the basis of an
application without payment of ad valorem court fee. By providing a direct appeal to the High
Court, second appeals are also dispensed with. The Tribunal is to follow a summary procedure
for adjudication of claims being provided, the sections do not deal with the substantive law
regarding determination of liability. They only furnish a new mode of enforcing liability. For
determination of liability one has still to look to the substantive law in the law of torts and Fatal
Accident Act, 1855 or at any rate to the principles thereof.” Chapter XII of the Motor Vehicles
Act, 1988 deals with the constitution of Claims Tribunal, Application of Claims and award of
compensation etc. This chapter also deals with procedure followed by tribunals in awarding
claim and awarding of interest and compensatory costs in some cases and appeals against the
orders of claims tribunal.

5
Oriental Fire & General Insurance Co. v. Kamal Kamini, A. I . R. 1973 (Orissa) 33

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Establishment and Composition of Claims Tribunal:
Section 165 of Motor Vehicles Act, 1988 empowers the State Government to constitute
Claims Tribunal to adjudicate upon claims for compensation arising out of motor vehicle
accidents, resulting in death or bodily injury to persons or damages to any property of third
parties.
A State Government may, by notification in the Official Gazette, constitute one or more Motor
Accidents Claims Tribunal (hereafter in this Chapter referred to as Claims Tribunal) for such
area as may be specified in the notification for the purpose of adjudicating upon claims for
compensation in respect of accidents involving the death of, or bodily injury to, persons arising
out of the use of motor vehicles, or damages to any property of a third party so arising, or both 6.
For the removal of doubts, it is hereby declared that the expression “claims for compensation in
respect of accidents involving the death of or bodily injury to persons arising out of the use of
motor vehicles” includes claims for compensation under section 140 and section 163-A7.
A Claims Tribunal shall consist of such number of members as the State Government
may think fit to appoint and where it consists of two or more members, one of them shall be
appointed as the Chairman thereof8. A person shall not be qualified for appointment as a member
of a Claims Tribunal unless he is or has been a Judge of a High Court, or is or has been a District
Judge or is qualified for appointment as a High Court Judge or as a District Judge9. Where two or
more Claims Tribunal are constituted for any area, the State Government, may by general or
special order, regulate the distribution of business among them10.

Setting up of Claims Tribunal :

A State Government may, by notification in the official gazette, constitute one or more
motor accident claims tribunal for such area as may be specified in the notification.

6
The Motor Vehicles Act, 1988, Section 165 (1)
7
Ibid., Explanation to Section 165 (1)
8
Ibid., Section 165 (2)
9
Ibid., Section 165 (3)
10
Ibid., Section 165 (4)

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In Minu B. Mehta v. Balkrishna11 it was held by the Supreme Court of India that the power of
a State Government to constitute Claims Tribunal is optional, and the State Government may not
constitute a Claims Tribunal for certain areas. Where any claims Tribunal has been constituted
for any areas, no civil court shall have jurisdiction to entertain any question relating to any claim
for compensation which may be adjudicated upon by the Claims Tribunal for that area, and no
injunction in respect any action taken or to be taken by or before the claims tribunal in respect of
the claim for compensation shall be granted by the civil court.
In Sushma Mehta v. Central Provinces Transport Services Ltd12 it was held by the court that
no tribunal can be constituted unless there has been firstly, a notification of the State
Government and Secondly, such notification has been published in the official gazette of the
state.

CHAPTER – 2

Claims Tribunal : A Substitute of Civil Courts for the Purpose of Compensation Claims
To say that Claims Tribunal is a Court is entirely different from saying that a Claims tribunal is a
Civil Court. It is a civil court for all intents and purposes of adjudication of claims for
compensation in motor accident cases. From the scheme of the Motor vehicles Act and the Rules
framed thereunder, it is clear that a Claims tribunal is constituted for a specific area, which is
specified in the notification for adjudication of such claim. The institution of the proceedings is
by an application for compensation. The tribunal disposes such application by giving the parties
an opportunity of being heard and holding an inquiry in to the claim and it has to make an award
determining the amount of compensation is to be paid and the amount which is to be paid by the
insurer. The tribunal has been given all the powers of a civil judge for the purpose of taking
evidence on oath and enforcing the attendance of witness and of compelling the discovery and
production of documents. Rules framed under the Act also confer all the powers of a civil court
on the Claims tribunal in so far as the same are not inconsistent with the provisions of the Act.
Right to appeal to the High Court is also provided.

11
Minu B. Mehta v. Balkrishna, A.I.R. 1977 S.C. 1248
12
Sushma Mehta v. Central Provinces Transport Services Ltd, AIR 1964 (MP) 133 (DB)

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Resort to Article 227 of Constitution of India in preference to Revision under Section 151 of
Civil Procedure Code, 1908
In New India Assurance Co. Ltd v. Ganga Devi13 it was held that as a matter of law and
practice both, where the statute has made provision for an appeal against a judgement or order
and right of appeal is absolute, additional, restricted or otherwise, a revision against such
judgement or order does not lie. The reasoning conceding to the power of the High Court to
entertain such a revision seems to gravitate upon one or the other of the propositions not
appealing to the reason. The claims tribunal is said to have trapping of civil court, but merely
because some authority has been clothed with the trappings of a court, it cannot logically follow
that it is liable to be treated as civil court for all intents and purposes. If the tribunal is or can be
considered to be a civil court, there is no use of employing the additive which inheres the
expression ‘trappings of court’. The use of this expression is itself indicative that the possession
of some trappings of a court cannot identify an authority with a de facto civil court.

Who Can File A Claim?

In case of damage to property, the application for compensation has to be made by the owner of
the property damaged. It is implied that in case of death of owner of the property, the legal
representatives of deceased owner can competently claim compensation14.
1. People, who have been injured in accidents on the road, can themselves file for compensation
or route the claims though their advocates.
2. But accident victims, who are below 18 years of age, cannot file for compensation themselves;
they have to go through their advocates.
3. Legal heirs of people who have died in accidents can also claim compensation; alternatively,
they can route their claims through their advocates.

13
New India Assurance Co. Ltd v. Ganga Devi, 2006 ACJ 2857 (Jhar.) DB
Dr. R.G.Chaturvedi, “Law of Motor Accident Claims and Compensation” (2010) p.642
14

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Who Can Report to MACT in Case of Accident?
Victim himself or through Advocate, in the case of personal injury. Through advocate in case of
minor applicant below the age of 18 years. Legal heirs themselves or through advocate in the
case of death. The owner of the vehicle in the case of property damage

Essential Documents Required to File Claim

Following documents are required along with application for compensation claim15 :
1. Copy of the FIR registered in connection with said accident, if any.
2. Panchnama copy (this is a list of damages that is drawn by cops in the presence of witnesses).
3. Copy of the MLC/Post Mortem Report/Death Report as the case may be.
4. The documents of the identity of the claimants and of the deceased in a death case.
5. Original bills of expenses incurred on the treatment along with treatment record.
6. Documents of the educational qualifications of the deceased, if any.
7. Disability Certificate, if already obtained, in an injury case.
8. The proof of income of the deceased/injured.
9. Documents about the age of the victim.
10. The cover note of the third party insurance policy, if any.
11. An affidavit detailing the relationship of the claimants with the deceased.
12. RTO Certificate (showing name and address of owner and insurance particulars of vehicle/s
involved in the mishap).
13. Passport-Size Photograph.
14. Court-Fee Stamp

The Court Fees For Filling An Application For Compensation

1. Affix a court-fee stamp of Rs 10 if the compensation you are claiming is less than Rs 5,000.
2. Affix a court-fee stamp that is worth .25 per cent of your claim if you are asking for
compensation that is between Rs 5,001 and Rs 50,000.

‘MACT- Motor Accident Claims Tribunal’, Accessed on Website, www.Vakilno1.com

15

On 14.07.2010 at 3.22 p.m.

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3. Affix a court-fee stamp that is worth .5 per cent of your claim if you are asking for
compensation that is between Rs 50,001 and Rs 100,000.
4. Affix a court-fee stamp that is worth 1 per cent of your claim if you are asking for
compensation that is more than Rs 100,000; but the maximum fee that you have to pay is Rs
15,000.

Option Regarding Claims For Compensation In Certain Cases :

Section 167 of the Act lays down that when claim arises under this Act and under the
compensation only under either of these Acts and not under both the Act.
Notwithstanding anything contained in the Workmen’s Compensation Act, 1923 where the death
of, or bodily injury to, any person gives rise to a claim for compensation under this Act and also
under the Workmen’s Compensation Act, 1923, the person entitled to compensation may without
prejudice to the provisions of Chapter X claim such compensation under either of those Acts but
not under both.
In New India Assurance Co. Ltd. v. Mehebubanbibithe decision in the case may be taken as
an exception to the provision of section 167, wherein the facts (at the cost of repetition) were that
the deceased had been deputed by his employer to carry a damaged transformer in a tractor, had
fallen into a ditch. The deceased, pressed under the damaged transformer in the ditch succumbed
to his injuries in the hospital. Death of the deceased had arisen out of and in the course of
employment since the deceased was employee of the electricity board and died while on duty.
Since the accident had occurred because of negligence of the driver of the tractor, which
belonged to a different person, it was held by the Division Bench that the claimants, in the
peculiar circumstance of the case, were entitled to claim compensation under the Motor Vehicles
Act as well as under the Workmen’s Compensation Act.

Award of the Claims Tribunal

Section 168 of the Act provides that the Claims Tribunal shall deliver the copies of the award to
the parties within fifteen days of the award and that the person against whom the award is made
shall deposit the amount awarded within thirty days of announcement of the award.

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On receipt of an application for compensation made under section 166, the Claims Tribunal
shall, after giving notice of the application to the insurer and after giving the parties (including
the insurer) an opportunity of being heard, hold an inquiry into the claim or, as the case may be,
each of the claims and, subject to the provisions of section 162 may make an award determining
the amount of compensation which appears to it to be just and specifying the person or persons
to whom compensation shall be paid and in making the award the Claims Tribunal shall specify
the amount which shall be paid by the insurer or owner or driver of the vehicle involved in the
accident or by all or any of them, as the case may be16.
Provided that where such application makes a claim for compensation under section 140 in
respect of the death or permanent disablement of any person, such claim and any other claim
(whether made in such application or otherwise) for compensation in respect of such death or
permanent disablement shall be disposed of in accordance with the provisions of Chapter X17.
The Claims tribunal shall arrange to deliver copies of the award to the parties concerned
expeditiously and in any case within a period of fifteen days from the date of the award18

CHAPATER - 3

COMPENSATION TO ACCIDENT VICTIMS UNDER M.V ACT

Today road accidents in our country has touched a new height and road accidents are
increasing day by day and resultant cases relating to motor accidents are increasing in our courts.
In majority of road accident cases because of rash and negligent driving, innocent person
becomes victims and because of this their dependents in many cases are virtually on the streets.
Because of increasing number of motor accidents and their victims, question of payment of
compensation is assuming great importance in public as well as for the courts. Generally as a
rule, victims of road accidents have to first establish that the accident was due to fault of the
person causing injury or damage, than only court will direct for payment of compensation. Indian
legislature being aware of the magnitude of the plight of victims of road accidents has introduced

16
The Motor Vehicles Act, 1988, Section 168 (1)
17
Ibid., Proviso to Section 168 (1)
18
Ibid., Section 168 (2)

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several beneficial provisions to protect the interest of the claimants and to enable them to claim
compensation from the owner of the vehicle or insurance company. In 1982 Chapter VII-A was
introduced in Motor Vehicles Act, 1939, wherein section 92A(1) provided that where the death
or permanent disablement of any person had resulted due to an accident, the owner of the vehicle
shall be liable to pay compensation in respect of such death or disablement in accordance with
the provisions of Section 92A(1). Section 92 A(2) provided for the fixed amount for such
liability on the basis of no fault liability. The claimant was not required to plead or establish that
the death or permanent disablement in respect of which the claim had been filed was the result of
the wrongful act, neglect or fault of the owner of the vehicle19. In Sohan Lal Passi v. P.Sesh
Reddy 20 it was observed by the Supreme Court that by introducing the chapter VII-A in the
Motor Vehicles Act, 1939, the Parliament has provided for payment of compensation within
certain limits, ignoring the principle of fault. Same is the position in the Motor Vehicles Act,
1988 and similar provisions have been retained in Chapter X of the Motor Vehicles Act, 1988.

In M.K.Kunhimohammad v. P.A.Ahmedkutty’s21 matter, the apex court has made suggestions

to raise limit of the compensation payable in respect of death or permanent disablement, as a
result of motor accidents, in the event of there being no proof of fault on the part of the person
involved in the accident, and also in hit and run motor accidents and to remove certain disparities
in the liability of the insurer to pay compensation depending upon the class or type of vehicles
involved in accident.
The above suggestions were incorporated in the bill of Motor Vehicles Act, 1988. Section 140 of
the Act provides that in case of death or permanent disablement of any person resulting from an
accident which arise out of use of a Motor Vehicle/s, the owner of offending vehicle/s shall be
liable jointly or severally to pay compensation in respect of such death or permanent
disablement. Under this section amount of compensation is a fixed amount of Rs. 50,000/- in
case of death and Rs. 25,000/- in case of permanent disablement. Compensation awarded under
this section does not barred the victim to claim compensation under any other law being in force,

19
Motor Vehicles Act. 1939, Section 92A(3)
20
Sohan Lal Passi v. P.Sesh Reddy, 1996 (5) SCC 21
21
M.K.Kunhimohammad v. P.A.Ahmedkutty, 1987 (4) SCC 284

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though the amount of such compensation to be given under any other law shall be reduced by the
amount of compensation payable under no fault liability under this section or in accordance
B. Govindarajulu Chetty v. M.L.A. Govindaraja Mudaliar22, it was held that the motor
vehicles are not such dangerous things. The following observations therein are significant”.
There is ample authority for the view that the lorry is not in itself a nuisance or a hazardous
chattel so as to attract the doctrine of absolute liability.... At page 665 the learned Law Lord in
Wing v. London General Omnibus Co.23, has explained as to why the rule in Rylands v. Fletcher,
would not apply to the ownership of a motor vehicle."
Further in Bishan Devi v. Sirbaksh24, the Supreme Court has held that a liability can be cast on
another only if he is in any way responsible for the accident which occasioned the injury. In
other words, there is no scope for any absolute liability on the owner of the vehicle to
compensate the injured. The provisions of the Motor Vehicles Act do not contain any statutory
provision to that effect. The Act does not provide a new right or a new remedy to a person who is
injured by an accident. The provisions of the Act do not in any way interfere with the substantive
common law on the subject.
CHAPATER - 4

Award of Compensation in Favour of Minor Claimants

The Claims Tribunal should, in the case of minors, invariably order the amount of
compensation awarded to the minor to be invested in long term fixed deposits at least till the date
of the minor attaining majority. The expenses incurred by the guardian or next friend may,
however, be allowed to be with drawn25.

Compensation Awarded to Illiterate Claimants

In the case of illiterate claimants also the Claims Tribunal should follow the procedures
set out in case of minors above, but if lump sum payment is required for effecting purchases of
any movable or immovable property, such as, agricultural implements, rickshaws, etc., to earn a

22
B. Govindarajulu Chetty v. M.L.A. Govindaraja Mudaliar, 1966 ACJ 153 (Madras)
23
Wing v. London General Omnibus Co. (1909) 2 KB 652
24
Bishan Devi v. Sir baksh Singh, 1979 ACJ 496 (SC)
25
Lilaben Udesing Gohal v. Oriental Insurance Co. Ltd., (1996) ACJ 673.

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living, the Tribunal may consider such a request after making sure that the amount is actually
spent for the purpose and the demand is not a ruse to with draw money;
Compensation to Semi-Literate Claimants
In the case of semi/literate persons the Tribunal should ordinarily resort to the procedure set out
in case of minors above unless it is satisfied, for reasons to be stated in writing, that the whole or
part of the amount is required for expanding any existing business or for purchasing some
property as mentioned in case of illiterate claimants above for earning his livelihood, in which
case the Tribunal will ensure that the amount is invested for the purpose for which it is
demanded and paid;
Compensation Amount Awarded to Literate Claimants
In the case of literate persons also the Tribunal may resort to the procedure indicated in case of
Minor Claimant above, subject to the relaxation set out in case of Illiterate and Semi-literate
claimants above, if having regard to the age, fiscal background and strata of society to which the
claimant belongs and such other consideration, the Tribunal in the larger interest of the claimant
and with a view to ensuring the safety of the compensation awarded to him thinks it necessary to
so order.
Award of Compensation to Widow Claimants
In the case of widows the Claims Tribunal should invariably follow the procedure set out
in case of Minor Claimant above.
Withdrawal of Amount in case of Personal Injury
In personal injury cases if further treatment is necessary the Claims Tribunal on being
satisfied about the same, which shall be recorded in writing, permit withdrawal of such amount
as is necessary for incurring the expenses for such treatment26.

KEY PROVISIONS IN MOTOR VEHICLES (AMENDMENT) BILL, 2016:

SAFETY OF PEDESTRIANS AND NON-MOTORISED TRANSPORT

There are currently no provisions in the Motor Vehicles Act (MVA) for the safety of

26
Lilaben Udesing Gohal v. Oriental Insurance Co. Ltd., (1996) ACJ 673.

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pedestrians and non-motorised road users. Amendment to Section 138 of MVA proposes the
insertion of new sub-section (1A), which gives the power to State Governments to regulate the
activities of pedestrians and non-motorised road users in a public place. The amendment
proposes States to regulate the activities of pedestrians and non-motorised road users.
Under the Chapter titled “Control of Traffic”, Section 138 gives power to the State
Governments to make rules for a number of specified matters that are in control of the State
Government. For e.g., 138 (2) (h) prohibiting the use of foot-paths or pavements by motor
vehicles. With the insertion of new sub-section (1A) in Section 138, the State Governments may
make rules in their respective State Motor Vehicle Rules specifying the manner of regulating the
activities of pedestrians and non-motorised road users27. Regulation of activities in a public place
of pedestrians and non-motorised road users could include the creation of special zones such as
cycle tracks and footpaths, NMT lanes etc., which could all be interpreted as regulation of such
activities.
STRINGENT PUNISHMENT FOR FAULTY ROAD DESIGN, ENGINEERING AND
MAINTENANCE
There is currently no provision which holds road contractors and civic agencies accountable
for faulty road design and non-maintenance of roads leading to accidents. There are no proposed
amendments to address this issue. Faulty designs of roads have caused over 10,000 accidents in
2015. However, no provision has been proposed to hold road contractors liable for defects in
construction and maintenance. The insertion of a section to penalize contractors for faulty road
design and engineering will ensure an accountability framework besides improving the quality of
the roads. Currently, contractors get away with faulty roads as there is no accountability
framework in place. Additionally, by connecting the provision for scientific investigation of road
accidents, the authorities will be able ascertain the factors such as faulty road engineering that
lead to road accidents.
STRICT REGULATION OF HEAVY MOTOR VEHICLES (HMVS) SUCH AS
TRUCKS, BUSES AND LORRIES
Minimum educational qualifications for drivers of transport vehicles are provided under Section
9(4) of the principal Act. A learners’ licence to drive a transport vehicle is granted only when the

27
Key Provisions In Motor Vehicles (Amendment) Bill, 2016:

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applicant possesses a licence to drive a light motor vehicle for at least one year provided under
Section 7. Minimum educational qualifications for transport drivers given under Section 9 (4)
has been omitted. Amendment to Section 72 (Grant of stage Carriage Permit) gives the power to
the State Government to waive any condition prescribed in the section to obtain a permit for a
stage carriage in rural areas. The conditions prescribed in Section 72 include
(i) The maximum number of passengers and the maximum weight of luggage that may be
carried.
(ii) Minimum and maximum number of daily trips that may be provided
(iii) Specifications of approved body codes
The Bill proposes automated fitness testing for transport vehicles with effect from 1st October,
2018. The automated fitness testing for transport vehicles is proposed to be amended by
amending Section 56 of the Act. Such amendment may specify ‘testing process’ and insert the
word ‘automated testing station’. Automation in fitness testing will eliminate corruption in
obtaining a fitness certificate for transport vehicles and simplify periodic testing28.
Amendment to Section 117 puts a duty on the State government to prioritise the safety of road
users and ensure free flow of traffic while designating parking zones. Allowing applicants to
obtain a transport licence without other requirements.
COMPENSATION IN HIT-AND-RUN CASES

The compensation for hit-and-run cases is currently Rs. 12,500/- in cases of grievous hurt and
Rs. 25,000/- in cases of death.
The proposed amendment to Section 161 of the Act is slated to increase the compensation
in cases of grievous injury to Rs. 50,000 or higher and to Rs. 2 lakh or higher in cases of death.
In 2015, there were 57,083 cases of hit-and-run accidents resulting in 20,709 deaths3. In view
of the high number of hit-and-run cases in India, the increased compensation will enable
immediate monetary assistance to the victim/victim families.

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Key Provisions In Motor Vehicles (Amendment) Bill, 2016:

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Ensuring Compensation to all victims
To ensure that all accident victims get compensation, it is necessary to formulate a more
comprehensive scheme for payment of compensation to victims of road accidents, in place of the
present system of third party insurance. For example, in South Africa and some other Africans
countries, Road Accident Funds have been created, managed by Road Accident Fund
Commissions, thereby eliminating the need for third party insurance. A fuel levy/ surcharge is
collected on the sale of petrol and diesel and credited to such fund. All accident victims, without
exception, are paid compensation from out of the said Fund by the Commission. But the
feedback from operational statics relating to such funds is that the scheme, while successful in
smaller countries, may encounter difficulties and financial deficits in larger countries like South
Africa or developing countries with infrastructural deficiencies.
In India, this rule was formulated in the case of M.C. Mehta v Union of India29, wherein the
Supreme Court termed it as ‘Absolute Liability’ This rule was also followed in the case of Indian
Council for Enviro-Legal Action v Union of India (1996). Further, section 92A of the Motor
Vehicles Act, 1938 also recognises this concept as ‘liability without fault’.
Negligence does not always mean absolute carelessness, but want of such a degree of care as is
required in particular circumstances. Negligence is failure to observe for the protection of the
interests of another person, the degree of care, precaution and vigilance, which the circumstances
justly demand, whereby such other person suffers injury. The idea of negligence and duty are
correlative. Negligence means either subjectively a careless state of mind or objectively careless
conduct. Negligence is not an absolute term, but is a relative one, it is rather a comparative term.
Doctrine of last opportunity is explained in simplest way in the matter of Municipal
Corporation of Greater Bombay v. Laxman Iyer,30 wherein an accident caused due to
negligence of both parties, substantially, there would be contributory negligence yet even in such
a case, whichever party could have avoided the consequence of other’s negligence would be
liable for the accident

29
M.C. Mehta v Union of India, AIR, 1987 SC 1086
30
Municipal Corporation of Greater Bombay v. Laxman Iyer, 2004 ACJ 53

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 Suggestions

Motor vehicle accidents affect the people of all walk of life. The Motor Vehicle Act has been
amended several times to keep it up to date. The need was felt that the Act should now inter alia
take into consideration also the changes in the road transport technology, pattern of passengers
and freight movement, development of the road net work in the country particularly the
improved technology of the motor vehicle management84.
Every year the legislature comes up with amendments and judiciary with enlightened judgments.
Hence, the need for frequent revisions of the codified law. Some of the important suggestions are
as follows:
Grant of Compensation and Treatment Thereof

Ensuring that all accident victims get compensation

To ensure that all accident victims get compensation, it is necessary to formulate a more
comprehensive scheme for payment of compensation to victims of road accidents, in place of the
present system of third party insurance. For example, in South Africa and some other African
countries, Road Accident Funds have been created, managed by Road Accident Fund
Commissions, thereby eliminating the need for third party insurance. A fuel levy/surcharge is
collected on the sale of petrol and diesel and credited to such fund. All accident victims, without
exception, are paid compensation from out of the said fund by the Commission.
Payment of Compensation Without Delay
The procedural delays in adjudication/settlement of claims by Motor Accidents Claims Tribunals
results in consequential hardship to the victims and their families. In cases where the accident
victim dies, the family -usually the widow and children - loses its sole bread winner and are
virtually driven to the streets. Many a time, the widow and children are forced to take up
unaccustomed manual labour for their survival, the children foregoing their education. Payment
of compensation without delay will help them to sustain themselves and pick up the threads to
live with dignity.

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Securing compensation to all victims of accidents involving uninsured vehicles

Where there is no insurance cover for a vehicle, the owner should be directed to offer security or
deposit an amount, adequate to satisfy the award that may be ultimately passed, as a condition
precedent for release of the seized vehicle involved in the accident. If, such security or cash
deposit is not made, within a period of three months, appropriate steps may be taken for disposal
of the vehicle and hold the sale proceeds in deposit until the claim case is disposed of.

Conclusion

On the basis of the study made in this work some conclusions have been drawn. These are
discussed, in brief as under:
Dubious Distinction.
India has the dubious distinction of being one of the countries with the highest number of road
accidents and the longest response time in securing first aid and medical treatment. The terrible
figures of road accidents yield a cart-load of case law, which, of course, is not an elegy on the
dead but real tribute on this threatening piece of legislation. Each case however, bears its own
imprint which cannot be universalized. The paradoxes involved in each individual motor
accident case had posed four confounding situations, namely:
1. A section of accident victims doubly unfortunate, first in getting involved in an accident yet
not getting compensation.
2. Widespread practice of using goods vehicles for passenger traffic.
3. Procedural delays in settlement of claims
4. Duty of courts to award compensation and secure it to the advantage of those for whom it was
mean

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 BIBLIOGRAPHY

BOOKS

1. A.B.Majumder, Motor Accident Claims,

2. B.N.Chaudhuri’s Motor Vehicles Act, 1988, (1990)
3. Dr. R.G.Chaturvedi, Law of Motor Accident Claims and Compensation, (2010)
4. Dr. R.K.Bangia, Law of Torts, (1997)
5. Rattan Lal & Dhiraj Lal’s – The Law of Torts, (1992),
6. Janak Raj Jai, Motor Accident Claims, Law & Procedure (2000)
7. Dr. R.G.Chaturvedi, Law of Motor Accident Claims and Compensation, (2010)

ARTICLES

1. Bakshi P.M’s, “ Accident Victims and the Criminal Law” Law 3 JILI, 1988 P-566
2. N. Kumar, “The Concept of Criminality in the Tort of Negligence”, 1998 Cri.L.J.136
3. K.Guptewar’s “Comparartive Negligence in Motor Accidents” 11 JILI (1969) 413
4. M.Stanley Feranandez’s “ Road Accidents” 1995 Cri.L.J. 49
5. Kunal Mehta’s “An Analyse of Law Relating to Accidents Claim in India”
6. Priyadarshini Narayan, “The Burden of Proof on the Prosecution: An Excuse for the
Acquittal”, 2001 XIV, C.I.L.Q 548.
7. Gooddheart A.L., “Foundations of Tortious Liability”, (1938) 2 Mod. L.R.1

ONLINE SOURCES
1. www.aptransport.org/html/accidents.htm
2. www.indiabike.com
3. www.niacl.com www.indiaconnect.com
4. www.lawguru.com
5. www.legalservicesindia.com
6. www.manupatra.com
7. www.cdjlawjournal.com
8. www. Legalhelpindia.com
9. www.legalindia.in

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