Introduction:
Motor vehicle accidents can have devastating consequences, leading to significant damages and injuries. In such situations, seeking compensation becomes crucial for the affected individuals. Two common avenues for pursuing compensation are Motor Accident Claim Petitions (MACP) and Insurance Claims. While both processes aim to provide financial relief, they have fundamental differences in terms of procedures, parties involved, and legal frameworks. This blog post aims to shed light on these dissimilarities to help individuals better understand the two options and make informed decisions.
I. Motor Accident Claim Petition (MACP):
A. Definition and Purpose:
A Motor Accident Claim Petition is a legal proceeding initiated by an individual (the claimant) who has suffered damages, injuries, or lost a near relative as a result of a motor vehicle accident. The primary purpose of a MACP is to seek compensation for various losses, including medical expenses, property damage, loss of earnings, consortium, pain and suffering.
B. Parties Involved:
1. Injured Individuals:
Any individual involved in a motor vehicle accident who has suffered harm due to the negligence or fault of another party can file a MACP. This includes drivers, passengers, pedestrians, cyclists, etc.
2. Legal Representatives:
In certain cases, the legal representatives of injured or deceased individuals, such as family members or appointed guardians, may file a MACP on behalf of the injured or deceased party, particularly, if they are minors or incapacitated.
3. Owner of the Vehicle:
Vehicle owner involved in the accident.
4. Insurance Company:
Insurance company who has insured the vehicle involved in the accident.
C. Process and Compensation Determination:
Process:
MACPs involve legal proceedings and are typically filed in a Motor Accident Claims Tribunal or a District Court, depending on the jurisdiction. The claimant presents their case U/s.141, 161, 164 or 166 of Motor Vehicles Act,1988 supported by relevant evidence, and the court or tribunal determines the compensation amount through hearings and delivering judgments or negotiations. Though not mandatory, seeking legal representation from a lawyer experienced in motor accident claims can be highly beneficial. A lawyer can guide the claimant through the process, help gather evidence, and assist during negotiations or court proceedings.
Prerequisites and Documentation:
To file a MACP, the claimant must have been involved in a motor vehicle accident caused by negligence or without his fault. Claimant needs to gather and maintain relevant documentation, such as police reports, medical records, bills of other expenses (vehicle repair attendant, ambulance bill etc.), photographs, witness statements, and any other evidence that can support their claim.
Time Limit:
MACP claims have a time limit and should be filed within six months from the date of the accident as per S.166(3) of Motor Vehicles Act,1988. Failing to file the claim within the specified period may result in the claim being time-barred and potentially denied.
Calculation of Compensation:
The court determines the compensation by considering various factors such as the age of the deceased, income, prospective income, dependency, disability in case of injury, medical charges, and property damage. Compensation can be claimed under various heads, including medical expenses, pain and suffering, loss of income, disability, and other damages related to personal injuries, mental and emotional trauma.
Compensation is based on guidelines given in catena of Judgements of Apex Court, few of which are listed below:-
AIR 2001 SC 3218 Lata Wadhwa Vs. State of Bihar,
AIR 2009 SC 3104 Smt. Sarla Verma &Ors. Vs.Delhi Transport Corporation,
(2017) 16 SCC 680 National Insurance Company Limited Vs. Pranay Sethi,
(2018) 18 SCC 130 Magma Insurance Company Limited Vs. Nanu Ram Alias Chuhru Ram,
(2005) 9 SCC 273 Khenyei Vs. New India Assurance Company Limited,
(2011) 1 SCC 343 Rajkumar Vs. Ajaykumar
II. Insurance Claims:
A. Definition and Purpose:
An insurance claim refers to the process of seeking compensation from an insurance company based on the terms and coverage specified in an insurance policy. The purpose of an insurance claim is to receive financial relief for damages and injuries covered by the policy.
B. Parties Involved:
1. Claimant:
The policyholder, an individual covered under an insurance policy, legal representative, or nominee can file an insurance claim.
2. Insurance Company:
The insurance company is responsible for assessing the claim, including factors such as liability determination, policy coverage, deductibles, and limits as per the policy.
C. Process and Compensation Determination:
Process:
Insurance claims typically involve promptly notifying the insurance company about the accident, submitting the claim with relevant documentation, and cooperating with the insurer’s investigation.The claimant has the opportunity to negotiate with the insurance company to reach a fair settlement. This may involve providing additional evidence, presenting arguments, and engaging in discussions .The insurance company assesses the claim and offers a settlement based on the policy’s terms and coverage. In some cases, if a settlement does not reach through negotiation, the claimant can file a claim petition in a consumer court or take legal action against the insurance company.
Prerequisites and Documentation:
Notify the insurance company about the accident immediately. To file a claim, the claimant must have an active insurance policy. Claimant need to submit documents such as police reports, medical records, photographs, assessment of damage and repairing cost, original bills.
Time Limit:
It is crucial to report the claim to the insurance company as soon as possible to facilitate faster processing. While there is no specific time frame for death claims, disability claims typically need to be reported within 120 days from the date of the disability. For critical illnesses or major surgeries, the claim must be reported within 60 days from the date of diagnosis or surgery.
Calculation of Compensation:
The actual amount of the insurance claim is determined by various factors specified in the insurance policy. Generally, the compensation is calculated using the formula: Claim = Loss Suffered x Insured Value / Total Cost.
This formula aims to limit the liability of the insurance company. The compensation amount is always within the limits of the insurance coverage specified in the policy.
Conclusion:
In conclusion, when it comes to seeking compensation after a motor vehicle accident, there are two main routes: Motor Accident Claim Petitions (MACP) and insurance claims. These avenues differ significantly in their procedures and outcomes. MACPs involve legal proceedings and allow for potentially higher compensation based on various factors and different heads of damages. On the other hand, insurance claims involve negotiations with the insurance company, and the amount claimed is limited by the coverage specified in the policy. Understanding these distinctions can help individuals navigate the process more effectively and ensure they receive the appropriate financial relief following a motor vehicle accident.
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