ABSTRACT:
Most, if not all motor vehicle accidents are a result of undesired turn of events. The Motor Vehicles (Amendment) Act, 2019 imposes a responsibility upon all persons using public spaces to drive a vehicle, to do so in a diligent manner in accordance with law. A failure to comply with the prescribed legal bounds can lead to guilt and consequent liability. In today’s busy world, it appears as if everyone on the roads is running late for something; and consequently, they end up compromising something greater in turn. An unintentional motor vehicle accident can have broader impacts than anticipated, wherein it can cause irreparable loss to both parties involving physical, emotional as well as economic hardships. There is a need for proper implementation of legal procedures by the police authorities when confronted with a motor vehicle accident case. Likewise, the Supreme Court through its recent judgement has issued certain directions/guidelines and further clarified the responsibilities of police officials in dealing with a motor vehicle accident claim.
I. INTRODUCTION:
The Motor Vehicles Act was initially passed in the year 1988. However, with time there were certain loopholes observed in the process of claiming compensation arising out of a ‘motor vehicle’ (MV) accident, especially regarding the considerable delay in disposal of claims pending in trial courts, or at appellate stages. Due to this delay, it was highlighted before the courts that there was no real sense of justice being extended in MV accident claims and proper implementation of procedures were almost negligible. This created a need for strict directions/guidelines to come from the Supreme Court for practical implementation of the MV Act and Rules.
The Indian Judiciary has been cognizant of this inefficiency, and time and again have issued directions and guidelines pertaining to proper implementation of procedures while dealing with MV accident claims. After issuing appropriate directions and establishing committees to ensure speedy implementation of the procedures, in its output, the judiciary revolutionized the motor vehicle compensation scheme due to which claimants have now been able to receive compensation within 120 days of the accident.
II. JUDICIAL HISTORY AND CONSEQUENT LEGISLATIVE ACTION:
Firstly, the Delhi High Court in the Rajesh Tyagi v Jaibir Singh (2009 SCC OnLine Del 4306) case had mandatorily directed the Station House Officers (SHOs) to submit ‘Accident Information Report’ (AIR) to the MACT (Motor Accident Claims Tribunal) within 30 days of accident, upon receiving information of an MV accident. The said report is supposed to be treated as a claim petition by the MACT for the purpose of inquiry. This requires the SHO concerned to take cognizance of the matter, register an FIR, and prepare a report in the form of an AIR. This AIR needs to be submitted before the MACT (within 30 days) which in turn, based on the evidence produced, would decide upon the validity of the claim and the quantum thereof.
Secondly, another notable effort was made in the Jai Prakash v National Insurance Co. Ltd [(2010) SCC 607] case, wherein the Supreme Court had identified majorly four issues, which are enumerated as under:
- Grant of compensation in cases of ‘hit and run’ where the vehicle remains unidentified which does not have insurance cover having third party insurance but carrying persons not covered by the insurance.
- Widespread practice of using ‘goods vehicle’ for ‘passenger traffic’.
- Procedural delays in adjudication by MACTs and following hardships to the victims.
- The full amount of compensation not reaching the victims, particularly to those who are uneducated.
After identifying these issues, the Supreme Court went ahead to issue directions to the Police Authorities and the Claims tribunals to properly implement the MV Act and the Rules framed thereunder, to ensure that all the above-mentioned issues are properly attended to and likewise, are addressed.
Thirdly, in the case of M.R. Krishna Murthi v The New India Assurance Co. Ltd, (2019 SCC OnLine SC 315), the Supreme Court directed all Claim Tribunals pan Indian to implement ‘Motor Accident Claims Annuity Deposit Scheme’(MACAD Scheme).
According to this scheme, upon occurrence of an accident, the police coming into picture in the first instance should do the complete investigation and file the FIR before the concerned Magistrate, and copies of the report must be sent to MACT as well as the Insurance company.
Insurance companies are required to investigate the same to find out whether the claim is payable, and within 30 days a response is required to be rendered to the MACT.
After all evidentiary documents are placed before the MACT, the MACT then is required to decide the case within 30 days.
Now, based on the repetitive guidelines issued by the Indian Judiciary, the Central Government with an objective to the improve road safety, facilitating citizens in their dealings with transport departments and strengthening rural and public transport introduced the Motor Vehicles (Amendment) Act, 2019. The Amendment Act is in nature of a benevolent legislation brought with an intent to compensate the family of the deceased (in case of death) and the persons suffered with injuries (including permanent disability) as expeditiously as possible.
Lastly, the most recent and authoritative directions were issued by the Supreme Court through its judgement dated 15.12.2022 in the case of Gohar Mohammed v Uttar Pradesh State Road Transport Corporation & Ors, (2022 SCC OnLine SC 1769), which is the subject matter of this article.
III. VEHICLE MUST BE INSURED:
As per Section 146 of the MV Amendment Act, it is mandatory to get a vehicle insured to be able to ply on public spaces.
Further, Section 147 of the Act stipulates certain requirements of what constitutes a valid insurance policy. Thereby, the insurance policy obtained by the insured must be in accordance with this provision.
Furthermore, only certain vehicles owned by the Central and State Governments are exempt from getting their vehicles insured, if they are not being used for any commercial enterprise.
[Such an exemption is subject to the order of the appropriate government.]
IV. PROSECUTION OF ‘MV’ ACCIDENTS BY POLICE AUTHORITIES:
Sections 159 and 160 of the MV Amendment Act deal with the duties of the police officer and the registering authority in dealing with an MV accident case.
Primarily, where an accident has taken place, information regarding the accident is required to be furnished to the police officer. (First-step)
On receiving such information, the police officer is required to investigate into the matter, register an FIR before the Magistrate and prepare the Accident Information Report (AIR) to be furnished before the Claims Tribunals.
Further, the police officer and the registering authority are also supposed to furnish such information (on payment of prescribed fee) to the victim/injured, and to the insurer against whom the claim has been made. The police should provide the identity of the vehicle and other information regarding the parties involved in the accident including the extent of damages sustained.
V. PROSECUTION UDNER THE 2022 RULES:
To further the process of implementation of the MV Act, the Central Government promulgated the “Motor Vehicles Amendment Rules, 2022.”
Now, as per the Rules, the investigation must be started immediately after receipt of information by the police officer of the police station concerned.
The Investigating officer (IO) must inspect the site of accident, take photographs/videos of scene and vehicle involved, followed by preparation of site plan to indicate the width of road and other relevant factors including the persons and vehicles involved in the accident.
In case of an injury, the IO should take photographs of the injured in the hospital and is required to conduct spot enquiry by examining the eyewitnesses or bystanders. The intimation regarding the accident is required to be furnished by IO within 48 hours to the Claims Tribunal in form of First Accident Report (FAR). A copy of the FAR is to be furnished to the victim and the insurer.
It is a duty of the IO to demand information from the driver/owner of the vehicle respectively within 30 days and also inform the injured/victim regarding their rights in such circumstances. After the information has been received from the driver/owner, the IO must prepare an Interim Accident Report (IAR) and submit it to the Claims Tribunal within 50 days of accident, along with relevant documents.
The injured/victim also have the right to seek vehicle details using the VAHAN App.
Subsequently, the IO is required to compile all relevant documents and materials in the form of Detailed Accident Report (DAR) within 90 days.
In conclusion, the IO must furnish FAR within 48 hours, IAR within 50 days, complete the investigation within 60 days and file DAR within 90 days. Copy of DAR must be furnished to the injured/victim, owner/driver of the vehicle and the insurance company involved.
As per the 2022 Rules, the failure to perform the duties by the police officer may entail severe consequences as envisaged under the provisions of the State Police Act.
VI. PROCEDURE BEFORE TRIBUNAL FOR GRANT OF COMPENSATION:
As per Section 149, upon receiving information of the accident from claimant or from the Accident Information Report (AIR), the insurance company is supposed to appoint a ‘Designated Officer’ to settle the claim.
The said officer is required to make an offer to the claimant, specifying its detail within 30 days. The offer made by the Designated Officer can either be accepted or rejected by the injured/victim or legal heirs of the deceased.
In case, the offer is accepted, the Claims Tribunal can record the settlement and treat the claim as settled by consent. On such settlement, the payment must be made by insurance company within 30 days.
But, in case of rejection of such offer, the Claims Tribunals is required to fix a date of hearing for adjudication of such claim on merits.
VII. PAYMENT OF COMPENSATION IN CASE OF DEATH OR GRIEVOUS HURT:
When a case of death or grievous hurt arising out of MV accident is brought about, the claimant is not required to establish any wrongful act or neglect of the driver/owner for payment of compensation.
In case of death, a compensation of INR 5,00,000/- is to be paid (along with other charges) and in case of grievous hurt, a compensation of INR. 2,50,000/- is required to be paid.
These payment scheme varies as per facts and circumstances of the case. However, the legislative intent is clear that a person who has suffered an MV accident must be compensated just and reasonably, and the victim/family of the deceased must be paid for the bodily injury or the loss of life caused by such accident by use of a motor vehicle in public space.
Moreover, in such cases, the claimants have the option for taking recourse directly by approaching the Claims Tribunal by filing an application seeking compensation, which can be filed by any representative of the deceased/victim.
VIII. CONCLUSION:
In summary, it is clear that the 2022 Rules have been introduced with an advent to implement the proper procedure (including judicial directions) to carry out the purpose of the benevolent MV Amendment Act, 2022. Insurance of the vehicle is necessary to claim damages arising out of an MV accident.
As soon as an intimation regarding an MV accident is reached, the police authorities are bound to take action as mentioned above. After investigation, the police officials are required to share all information regarding the accident with the victim/injured and the insurance company. Further, the police is required to submit the investigation report (as mentioned above) to the Claims Tribunal, which in turn must, as expeditiously as possible, decide upon the claim.
