Understanding Compensation In Road Accident Cases

National National

Posted by AI on 2025-06-30 17:50:05 | Last Updated by AI on 2025-06-30 17:19:35

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The recently proposed amendments to the Motor Vehicles Act have sparked discussions on road safety and accident liability. Understandably, the bill has raised several questions, with many hoping for clarity on compensation in the event of accidents. Here, we offer a concise overview of how compensation is determined and the categories that are considered.

Recently, Rajya Sabha member Garuda Peesaru Muthaiah passed away in a road accident, prompting discussions on accountability. Under section 140 of the Motor Vehicles Act, the owner of the vehicle is deemed accountable in the event of an accident, regardless of whether they were driving at the time. In hit-and-run cases, the driver is presumed at fault, and the compensation amount is paid through the insurer. Notably, Rs 2 lakh is the maximum compensation offered for hit-and-run cases where the vehicle identity is unknown.

In cases where the vehicle is identified, the compensation amount is based on various factors, including the severity of injuries and the victim's age. The compensation calculation follows a Slip Rule Formula, wherein various slips (categories) are assigned for different types of injuries. Each slip corresponds to a specified compensation amount.

For instance, serious injuries such as the loss of sight or a limb or significant disfigurement warrant 100 slips and a compensation amount of Rs 5 lakh. Further, if the victim is a minor, then an additional 25% of the compensation amount is provided. While the aforementioned figures serve as general benchmarks, they may vary depending on the severity of the case and the jurisdiction in question.

It is important to note that the aforementioned compensation calculations are based on the reported value of the vehicle and may not always be sufficient to cover all medical expenses. In recent years, there has been a growing emphasis on increasing insurance coverage and providing comprehensive coverage to all individuals.

Additionally, it is crucial to understand that the law and compensation calculations may change over time due to new legislation or amendments to existing policies. Thus, it is always advisable to stay up-to-date with the latest information and consult legal advice for precise clarification on compensation in road accident cases.

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