Answer By law4u team
The settlement of motor accident claims in India can be done through two ways: by making a claim under the Motor Vehicles Act, 1988 or through an out-of-court settlement. Here are the procedures for both: Claim under the Motor Vehicles Act, 1988: a. The first step is to file an application for compensation with the Motor Accidents Claims Tribunal (MACT) having jurisdiction over the area where the accident occurred. b. The claimant must provide documents such as the FIR, driving license, registration certificate, insurance policy, and medical reports, to support the claim. c. The MACT will conduct an inquiry and assess the extent of the damage, injury or loss suffered by the claimant. d. Based on the inquiry and assessment, the MACT will award compensation to the claimant, and the insurance company will be directed to pay the compensation. Out-of-court settlement: a. The claimant and the insurance company can also settle the claim out of court, without approaching the MACT. b. In such cases, the claimant must approach the insurance company with a written claim, stating the details of the accident, and the amount of compensation sought. c. The insurance company may conduct an inquiry and offer a settlement amount to the claimant. d. If the claimant agrees to the settlement amount, they will have to sign a discharge voucher, which will release the insurance company from any future claims related to the accident. It is important to note that in cases where the compensation sought exceeds the insurance coverage, the claimant can approach the MACT for compensation under the Motor Vehicles Act. Additionally, it is advisable to consult a lawyer while filing a claim or settling a claim, to ensure that the process is fair and the claimant receives just compensation.
