How Motor Accident Claims Are Decided: A Guide to Liability and Compensation
A breakdown of who can file motor accident claims, who is liable to pay, and the heads under which compensation is awarded.
Motor accident claims in India follow a settled legal framework that determines who may seek compensation, who must pay it, and how the amount is calculated. The process begins with identifying the proper claimant and the party legally liable.
Who can file a claim
A claim can be filed by the injured person, or by the legal heirs or dependents of a person who has died in a road accident. In death cases, the right to compensation belongs to those who suffered a loss of dependency due to the death.
Who is liable to pay
The owner of the offending vehicle is primarily liable. The insurer of that vehicle is generally called upon to satisfy the award, provided the vehicle was insured at the time of the accident. Where there is a breach of the insurance policy conditions, a tribunal may direct the insurer to pay the compensation first and then recover the amount from the owner or driver.
Pay and recover
The "pay and recover" principle allows a tribunal to order the insurer to compensate the victim or the victim's family, while permitting the insurer to later recover that sum from the party responsible for the policy breach. This ensures that the claimant is not left waiting while disputes between the insurer and the insured are resolved.
Compensation in death cases
In a fatal accident, compensation is typically assessed under four heads:
- Loss of dependency, calculated from the deceased's income and age.
- Loss of estate.
- Loss of consortium, awarded to the spouse or close family members.
- Funeral expenses.
The tribunal considers factors such as the age of the deceased, their income, and the number of dependents while computing the final award. The objective is to place the dependents in a position similar to what they would have occupied had the accident not occurred.