Prior to the Motor Vehicles Act,
1988, the Fatal Accidents Act, 1885 dealt with the rights of injured or dead persons
in an accident. The Act of 1885 was restricted as it only facilitated the
procedure and right of named legal heirs to claim for compensation from the
person who was guilty of negligence.
With the passage of time, it was
realized that there was an increase in automation and consequential losses of
life and property in accidents for which victims of such accident claims should
be provided relief and its time to bring in an effective law.
The Motor Vehicles Act, 1939 was
enacted which was applicable for all kinds of motor accidents. Although updated
from time to time, there was a need to implement laws relating to road
transport technology, pattern of passenger and freight movements, developments
of road network and also improved techniques in the motor vehicles management.
Several committees were set up,
who recommended updation, rationalization and simplification of the law. This
resulted in replacement of the 1939 Act with the Act of 1988 and this is how
the Motor Vehicles Act, 1988 was enacted.
The 1988 Act was introduced with
various different aspects on law, such as, interim award, insurance of motor
vehicle against third party risk, constitution of Claims Tribunals and
adjudication of claims, etc.
However, at present time this
legislation needs lots of improvisation. This has led to further amendments to
the legislation from time to time.
Amendment to Motor Accident Compensation Scale-latest amendment
Through notification in official
gazette the Central Government has amended the Second Schedule to the Motor
Vehicles Act, 1988.
With the amendment the entire
Schedule II has been substituted. The new Schedule to the Act amends the
provisions of liability.
In the case of fatal accidents:
The compensation payable in case of death shall now
be INR 5,00,000/-
In the case of accidents resulting in permanent
Compensation payable shall be INR 5, 00, 000
multiplied by the percentage of disability as per Schedule I of the Employee?s
Compensation Act, 1923.
further provides that the minimum compensation provided in case of permanent
disability of any kind shall not be less than INR 50, 000/-
In the case of accidents resulting in minor
In these cases a minimum compensation of INR 25,
000/- shall be payable.
The amendment also suggests that
from January 2019 the amount of compensation as mentioned in clause (a) to (c) shall
be increased by five percent annually.
The amendment to Schedule II of the Motor Vehicles Act, 1988
are as follows:
"THE SECOND SCHEDULE
(See Section 163A)
COMPENSATION FOR THIRD PARTY FATAL ACCIDENTS/INJURY CASES CLAIMS
1. (a) Fatal
in case of Death shall be five lakh rupees.
resulting in permanent disability:
shall be = [Rs. 5,00,000/- × percentage disability as per Schedule I of the
Compensation Act, 1923
(8 of 1923)] :
Provided that the
minimum compensation in case of permanent disability of any kind shall not be
fifty thousand rupees.
resulting in minor injury:
A fixed compensation
of twenty five thousand rupees shall be payable:
2. On and from the
date of 1st day of January, 2019 the amount of compensation specified in the
clauses (a) to (c)
of paragraph (1) shall
stand increased by 5 per cent annually".
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