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A quick review of the Motor Vehicle Act and its latest amendment

             


Sneha Verma

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:

o   The compensation payable in case of death shall now be INR 5,00,000/-

         In the case of accidents resulting in permanent disability:

o   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.

However, it 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 injury:

o   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)

SCHEDULE FOR COMPENSATION FOR THIRD PARTY FATAL ACCIDENTS/INJURY CASES CLAIMS

1. (a) Fatal Accidents:

Compensation payable in case of Death shall be five lakh rupees.

(b) Accidents resulting in permanent disability:

Compensation payable shall be = [Rs. 5,00,000/- percentage disability as per Schedule I of the Employee?s

Compensation Act, 1923 (8 of 1923)] :

Provided that the minimum compensation in case of permanent disability of any kind shall not be less than

fifty thousand rupees.

(c) Accidents 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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A quick review of the Motor Vehicle Act and its latest amendment


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