Supreme Court’s Landmark Ruling: Evolving Jurisprudence On Motor Accident Compensation

A lot of individuals lose their lives in traffic accidents each year. They sometimes bear the consequences of other people’s acts, and other times it is their responsibility. But what recourse does someone who is harmed by the wrongdoings of others have? The Motor Vehicles Act of 1988 is the way forward. All of the criminals are held accountable under this Act and are required to recompense the victim as a form of punishment. 

This Act attempts to prevent motor accidents, but in the event that one does occur, it makes sure the person who caused the accident is held accountable and the victim receives justice.

Motor Accident Compensation: About

• The Motor Vehicles Act of 1988 is the law that governs motor vehicles in India.
• The Central government offers compensation in the event of hit-and-run automobile accidents under the virtue of Section 161 of the Act. The government pays at least two lakh rupees in compensation to the deceased in a hit-and-run car accident. In the event of a hit-and-run car accident, at least 50,000 rupees in compensation are awarded to the injured party. 
• According to Section 164, the owner or insurance company of a motor vehicle is required to make restitution if someone is killed or seriously injured in an accident involving that vehicle. In the event of a death, the compensation is five lakh rupees; in the event of a grievous injury, it is two lakh rupees. The victim or the victim’s lawful successors, typically the victim’s family members, may get the compensation.

Penalties under the Motor Vehicles Act, 1988

• Section 181 of the act stipulates that an individual who operates a vehicle without a valid driving license or before reaching the age of majority faces a maximum punishment of Rs 500/-, a maximum sentence of three months in jail, or both.

• According to Section 184 of the Act, if someone drives at a pace that endangers the life of other drivers, they may be fined up to Rs 1,000 or face up to six months in jail.
• According to Section 185 of the Act, if an individual operates a vehicle while under the influence of drugs, they may be subject to a fine of up to Rs 2,000 or maybe six months in jail. 

Landmark Cases on Motor Accident Compensation

• In the case of Rajasthan State Road Transport v Kailash Nath Kothari & Ors (1997),  when a bus had an accident, the person driving it wasn’t the real owner. Additionally, a corporation that had chosen the bus’s driver had rented the vehicle from the bus’s real owner. Therefore, the bus was not in the custody of its true owner. The Corporation was ordered to compensate the victims after the Court found the Corporation responsible for the accident.
• In the case of Raj Kumar v Ajay Kumar (2011),  the impact of a physical disability on a victim’s ability to earn a living must be determined, the Supreme Court ruled in response to a case examining the relationship between an accident’s bodily injuries and the ensuing loss of earning capacity.
• In the case of National Insurance Company Limited v Pranay Sethi (2017),  the standards for determining the amount of compensation that an offender must pay to accident victims who have become self-employed, have a fixed wage , or get a permanent salary were established by the Supreme Court. The Court ruled that fairness, equity, and reasonableness should serve as the foundation for the idea of “just compensation.”

Factors Taken into Consideration by the Lawyers in Case of Motor Accident Compensation

Each accident claim is unique. Therefore, there isn’t a single compensation plan that covers all of the losses brought on by the accident. As a result, when it comes to each claim, the lawyers take into account several criteria to fight for compensation.

• Earnings lost as a result of being injured and missing work.
• The potential wage loss as a result of injuries.
• Long-term consequences of injuries on one’s ability to pursue a career.
• Any modifications to your capacity to work.
• Travel expenses incurred as a result of your treatment Any necessary accommodations.
• Damages for pain and agony.
• Damages from emotional discomfort.

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