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If by some stroke of bad luck a road accident claims the life of your loved one, a new move by the government will ensure the maximum compensation the victim’s beneficiary will receive will be no more than Rs 15 lakh.
The fourth draft version of the Road Transport and Safety Bill, 2015, which seeks to replace the Motor Vehicles Act, 1988, has introduced an upper limit for road accident victims. What this contentious move essentially means is that the amount payable to any individual or his family in cases of accident or demise is Rs 15 lakh, at the most. Some courts awarded up to Rs 2 crore to kin of accident victims previously. The Bill will be tabled in Parliament in a few days.
At present, the compensation liability of insurance companies is subjectively decided on a per case basis by Motor Accident Claim Tribunals (MACTs). The earning capacity, age and dependants of the victim are some of the factors considered by courts.
Insurance companies have been pushing for capping the amount payable for a while now because of their increased liabilities.
“This is a shocking and insensitive move by the government at the behest of motor insurance companies and transporters lobbies. This capping is grossly unfair to accident victims and needs to be removed,” said S P Singh, senior fellow, Indian Foundation of Transport Research and Training.
With the new Bill envisaging increased monetary penalties for not having mandatory third-party insurance policies, driving licence annulments and cancellation of road permits for road rule violations, it is likely to decrease accidents and increase revenues for motor insurance companies.
