Hit by uninsured vehicle? Here is how you can claim compensation

Collect evidence at accident site, file FIR, avoid hasty settlements, and file MACT claim against driver and registered owner

The Supreme Court has taken a strong view of India’s uninsured vehicle problem. It noted that 56 per cent of vehicles—around 16.5 crore out of a total of 30.4 crore registered vehicles—lack valid insurance, although third-party motor insurance is mandatory. It directed authorities to use surveillance cameras to identify uninsured vehicles and issue e-challans. It also asked the Centre to explore a “no insurance, no fuel” system. But what happens if an uninsured vehicle hits you? Here’s what victims and their families need to know to claim and recover compensation. 

What to do after an uninsured-vehicle accident 

According to legal experts, after an uninsured vehicle hits someone, the first step is to seek medical treatment and ensure the hospital records the incident as a road accident. The victim should preserve the medico-legal case (MLC) record, discharge summary and medical bills as key evidence. 

The victim should also inform the police promptly and provide the vehicle number and driver or owner details, if available. The victim should specifically mention that the vehicle was uninsured. 

“Avoid any oral settlement at the accident spot. Since there is no insurer to pay the award, the claim will generally be pursued against the driver and registered owner. Third-party insurance is mandatory under Section 146 of the Motor Vehicles Act, 1988, and driving an uninsured vehicle is an offence under Section 196. However, the victim must still file a proper compensation claim,” says Shankey Agrawal, partner, BMR Legal. 

Evidence to collect at the accident site 

The vehicle registration number is the most important piece of evidence. Victims should also collect photos and videos of the vehicle, accident site and injuries, and note eyewitness details. Victims should secure closed-circuit television (CCTV) and dashcam footage quickly before it is overwritten. If possible, they should collect details of the driver’s licence, vehicle registration, permit, fitness certificate and insurance. If the vehicle is uninsured, they should mention this in the police complaint.

“In Mangla Ram v. Oriental Insurance Co. Ltd. (2018), the Supreme Court held that Motor Accident Claims Tribunal (MACT) claims are decided on the test of ‘preponderance of probability’ and not the stricter criminal-law standard. This helps victims, but it does not remove the need for basic evidence. Stronger initial evidence can, therefore, significantly support the victim’s claim,” says Agrawal. 

When to file a first information report 

Victims should file a first information report (FIR) in cases involving injury, death, rash or negligent driving, a hit-and-run accident, or an uninsured vehicle. It records key details about the accident, vehicle and driver and helps generate important documents, including the site plan, inspection report and charge sheet. 

“Under Section 159 of the Motor Vehicles Act, police must prepare an accident information report for the Claims Tribunal. In Jai Prakash v. National Insurance Co. Ltd., the Supreme Court stressed the need for prompt action by police, hospitals and tribunals. If police refuse to register an FIR, the victim should submit a written complaint to a senior officer and retain proof,” says Agrawal. 

A delay in filing the FIR is not always fatal in MACT cases, but an unexplained delay gives the opposite side an avoidable defence. 

Before you approach the MACT 

Victims should collect certified copies of the FIR, MLC, medical records, bills, disability or death certificate, post-mortem report, site plan, inspection report, charge sheet and registration certificate (RC), along with a report on the vehicle’s insurance status. They should also preserve proof of age, income, dependants, medical expenses and loss of earnings. 

“A claim is generally filed under Section 166 of the Motor Vehicles Act against the driver and registered owner. If the vehicle is uninsured, recovery has to be pursued against the owner. In Naveen Kumar v. Vijay Kumar (2018), the Supreme Court held that the person registered as the vehicle owner is liable for motor accident claims. This is important where the vehicle has been sold informally but not transferred in regional transport office (RTO) records,” says Agrawal. 

If the vehicle is unidentified, the victim may claim under the hit-and-run compensation scheme under Section 161. For an identified but uninsured vehicle, the usual remedy is a MACT claim against the driver and owner. 

How to approach the MACT: Dos and don’ts 

You do not need to wait for the police investigation to end before you approach the MACT. You can file a claim under Section 166 of the Motor Vehicles Act in the jurisdiction of the accident, claimant or vehicle owner. The MACT charges no court fee, and legal aid is available for those who need it. 

“Preserve the FIR, medico-legal certificate, medical bills and prescriptions, and seek interim compensation, if required. Avoid signing settlements without legal advice, delaying the claim unnecessarily, or assuming criminal proceedings against the driver will secure compensation—they are separate remedies,” says Kaushal Parsekar, partner, King Stubb & Kasiva, Advocates and Attorneys. 

Who pays for an uninsured vehicle accident?

 

If the vehicle is uninsured, the insurer is not liable. The vehicle owner and, where applicable, the driver must generally pay compensation. The Tribunal still passes an award, but the victim must pursue recovery against the owner’s personal assets rather than an insurer. 

“This can leave victims struggling to recover compensation, especially if the owner lacks sufficient assets or refuses to pay. In hit-and-run cases, victims can claim a fixed, statutorily capped amount from the Solatium Fund maintained under Section 161 of the Act. However, this remains a limited safety net and is not a substitute for full compensation,” says Parsekar. 

How the MACT calculates accident compensation 

The MACT determines the amount of ‘just compensation’ under Section 168 of the Motor Vehicles Act, 1988 (MV Act). “The compensation is calculated using the ‘multiplier method’, which has been established through a series of landmark Supreme Court judgments,” says Manmeet Kaur, partner, Karanjawala & Co. 

In death cases, courts consider the deceased’s age, income, future prospects and dependants, and apply deductions and an age-based multiplier to calculate loss of dependency. Courts also award compensation for loss of estate, consortium and funeral expenses. “For injuries, factors include permanent disability, loss of earning capacity, medical expenses, pain and suffering, and attendant care or assistive devices. Interest on the awarded amount is also generally included,” says Parsekar. 

Why can recovery take longer? 

Recovery can take years if the owner has no traceable assets or the vehicle has little recoverable value. Delays can also arise when a vehicle is sold without transferring registration, ownership is disputed, documents are forged, or the owner evades legal notices. 

“Appeals against the Tribunal’s award can further prolong recovery. The Supreme Court’s push for automatic number plate recognition (ANPR)-linked insurance checks and fuel-linked enforcement aims to reduce the number of uninsured vehicles and prevent such problems at the source,” says Parsekar. 

What to do if the owner delays compensation 

If the vehicle owner fails to pay, delays payment or disputes it, the victim or their family can use several legal remedies to enforce the award.

“Under Section 174 of the MV Act, the claimant can seek a recovery certificate from the Tribunal, which is forwarded to the district collector. The MACT can also order attachment and public auction of the owner’s movable or immovable assets to recover the awarded amount,” says Kaur. 

Once the Tribunal passes an award, the claimant can enforce it like a decree, including by attaching the liable party’s property or bank accounts. Either side can file an appeal before the High Court under Section 173 if it disputes the award.

“Families facing financial hardship can seek interim compensation or partial release of the awarded amount. If an uninsured vehicle owner cannot pay, victims can also check eligibility for the limited Solatium Fund. Importantly, getting the award is not the end—the compensation must also be actively recovered,” says Parsekar.

                               Documents to support your claim 

•    Hospital bills, discharge summaries, prescriptions and diagnostic reports

•    Disability certificate issued by a medical board

•    Salary slips, ITRs, Form 16, bank statements, business records to establish income

•    Death certificate, post-mortem report, FIR and charge sheet

•    Age proof and documents establishing dependants’ relationship

•    Vehicle registration and driving licence 

  (The writer is a Delhi-based independent journalist)