Vehicle Compensation : Its Proceedures

When accident occurs what the Police must do?

When information of a road accident is received in the Police Station, the Investigation Officer (IO), who investigates the accident, shall inspect the site of the accident, take photographs / videos of the scene of the accident and the vehicles involved in the accident and prepare a site plan drawn scale to scale, indicating the lay out and width etc of the roads or places, the position of the vehicles and persons involved and such other relevant facts.

If it is an accident involving injury the IO shall take the photographs of the injured person in the hospital. The IO shall conduct spot enquiry by examining the eye witnesses / bye standers.

The Police Officer should provide any information at his disposal relating to the vehicle and the name and address of the person injured and property damaged to the claimant of the compensation or the insurance company, within specified time u/s 160 of MV Act.

The IO shall work as a facilitator and furnish information to the MACT and other stakeholders.

File First Accident Report (FAR) in 48 hours: The IO is bound to file a First Accident Report (FAR) to the MACT, in Form I, within 48 hours of the accident.

Copies of FAR to be furnished: The copies of the FAR to be furnished to the Nodal Officer of the Insurance Company, the victim, legal representatives, State Legal Service Authority and to be uploaded on to the website of the police.

The Insurance Company has to appoint a Designated Officer for the case within 10 days of receipt of the FAR. The Designated Officer will be responsible for dealing with and processing the case and to pass a reasoned decision in respect of compensation to be paid to the victim.

The Nodal Officer to be appointed by the Insurance Company will deal with investigation of the accident case by the police officers.

Inform the Rights of the Victim: The IO shall inform the rights of the victim to the victim / legal heirs in Form II with a flowchart of the schemes available to them, within 10 days specifying the remedial scheme applicable to them. A copy of the Form II has to be included in the Detailed Accident Report (DAR).

Driver’s information: The IO shall provide a blank copy of the Form III and collect the information of the driver in Form III, within 30 days of the accident.

Owner’s information: Similarly, the owner’s information shall be collected in Form IV within 30 days of the accident.

IAR to be filed within 50 days: The IO shall send the IAR to the Tribunal in Form V with relevant documents within 50 days of the accident.

A copy each of the IAR shall be given to the Insurance Company of the vehicle involved, the victim, the claimant, the State Legal Services Authority, insurer and General Insurance Council.

The IO as well as the Insurer should verify the details of the driver / owner in form III and Form IV, by using wahan app or shall take the help of Registering Authority. The IO shall file the verification report in Form X before the MACT along with the DAR.

Victim to provide details within 60 days: The IO shall give a blank copy of Form VI (VIA for minor) to the victim or the legal heir and collect their details in the form along with relevant documents. They shall furnish such details and documents to the IO within 60 days of the accident. If the victim includes a minor the form to be used is Form VIA.

The IO shall furnish a copy of the Form VI and VIA along with the documents and the DAR to the Insurance Company and to the Child Welfare Committee & the State Legal Service Authority, in case child is involved, within 30 days of receiving the Form VI and VIA.

The Insurance Company, then, shall verify the details of the victim within 30 days from the date of receipt of the DAR.

Investigation of the criminal case within 60 days: The IO shall complete the investigation of the criminal case relating to the vehicle accident and file the Police Report to be submitted under Section 173(2) of the Criminal Procedure Code (CrPC) before the concerned Criminal Court, within 60 days of the accident.

The IO should also file a copy of the above said police report along with the DAR to the MACT.

DAR to be filed within 90 days: The IO should compile all documents and materials in the form of a Detailed Accident Report (DAR) in Forms VII and submit them to the MACT within 90 days of the accident.

The DAR should be accompanied with the Site Plan in Form VIII, Mechanical Inspection Report in Form IX, Verification Report in Form X, and the Police Report under Section 173 (2) of the CRPC.

The DAR should be treated as a Miscellaneous Application for compensation.

Copies of the DAR to the victim etc: The IO should furnish a copy of the DAR to the victim, owner, driver of the offending vehicle.

The IO shall submit a copy of the DAR and other documents to the Nodal Officer of the Insurance Company, State Legal Service Authority, and the General Insurance Council.

The IO shall send a copy of the DAR to the concerned criminal court within 7 days of submitting it to the MACT.

If the IO fails to do his duties, he will face consequences in the form of disciplinary action under the Police Act.

Extension of time to file IAR & DAR: The IO can seek extension of time for filing IAR and DAR, for reasons beyond his control. The Tribunal can extend the time as it considers appropriate.

In case of failure to give details by parties: If the parties connected with the accident fail to disclose any relevant information or documents the IO can seek necessary direction from the MACT.

The Tribunal will give direction within 15 days to provide the information or documents.

In medico legal cases (MLC): The concerned Hospital should furnish Post-Mortem Report or Medico Legal Certificate (MLC) to the iO, within 15 days of the accident.

Registering Authority to verify documents: The Registering authority should verify the licence of the driver, fitness & permit of the vehicle, and supply to the IO within 15 days. The Registering Authority should furnish information free to claimants, insurer etc. They shall facilitate to identify the vehicle name, and address of the person using the vehicle at the time of accident, and the person injured or property involved.

The Registering authority should provide any information at its disposal relating to the vehicle and the name and address of the person injured and property damaged to the claimant of the compensation or the insurance company, within specified time u/s 160 of MV Act.

If Accident reports are not complete

If the FAR, IAR and DAR are not complete the MACT shall ask the IO to complete the documents and the date of first hearing will be done only after making them complete.

MACT can treat DAR as Claim Petition

On receiving any Accident Report (DAR) from the police officer, the Motor Accident Claim Tribunal (MACT) shall register it as a Miscellaneous Application for accident compensation, under Section 159 and 166 (3) of MV Act.

Persons involved in accident can also file a claim

The claim petitions filed by the persons involved in the accident or their representative will also be added to such Miscellaneous Application.

Such application should be filed within six months from the date of occurrence of the accident, as per Section 166 (3) of the MV Act. No condonation of delay is possible.

When DAR filed but not Police Report: If Police Report under CrPC is not filed when DAR is filed, the MACT shall either wait for the report or record the statements of the witnesses to determine the negligence before making the award.

Additional reading

  1. Motor Vehicle Act, 1988
  2. Motor Vehicle (Amendment) Act, 2019
  3. The Central Motor Vehicles (Fifth Amendment) Rules, 2022: enforced since 1/4/2022
  4. New Forms prescribed by Motor Vehicle (Fifth Amendment) Rules 2022
  5. Solatium Fund Scheme, 1989, of the Government of India