Damages for road accident victims to increase 10-fold
NATIONAL | May 12, 2018 (TNN):
The government has decided on a ten-fold increase in the minimum compensation payable to road accident victims or their kin in case of death, permanent disability or minor injury irrespective of their income and age criteria. While revising this after a gap of 24 years, the transport ministry, however, has left the option for people to pursue their case in the Motor Accident Claims Tribunal (MACT) if they believe they deserve higher compensation.
As per the new norms, to be notified soon, in case of a fatality in road accident the compensation will be Rs 5 lakh and for permanent disability it will be in the range of Rs 50,000 to Rs 5 lakh based on the extent of disability. This will increase by 5 per cent annually. This is being pushed as a move to provide quick relief to a large section of victims. Annually, 1.5 lakh people die while more than 5 lakh get injured in road accidents.
The higher compensation may also entail an increase in the third party premium outgo for vehicle owners.
The transport ministry while deciding the fixed compensation under Schedule-II of MV Act considered the average claims paid for death for 2011-12 to 2015-16 by the MACT ranged between Rs 3 lakh and Rs 4.9 lakh.