Road accident victims may lose their lives or end up disabled. While physical abilities are irreplaceable, financial compensation would alleviate the victims’ problems. Raj Pradhan reveals the many details of how such financial compensation can be obtained and also the best-kept secret of accidents involving drunk drivers.
Considering such low premiums for unlimited liability cover, it is inexplicable that 5% of vehicles on the road do not have valid insurance. This goof-up is more for two-wheelers than cars—even more baffling, considering that the TP premium is a pittance for two-wheelers. A two-wheeler can cause as much damage as cars; there is no justification for not buying the mandatory TP liability insurance. There is no grace period after the insurance term gets over and you lose the no-claims-bonus (NCB) if you fail to renew before policy expiration.
The TP liability cover, which is mandatory in India, does not provide any benefit to the insured; however, it covers the insured’s legal liability for death/disability of third party loss or damage to third party property. MACT is a tribunal in which the cases related to road accidents are decided and appropriate compensation is given to the victims or their next of kin. MACT courts are presided over by civil judges from the state higher judicial service and come under direct supervision of the High Courts.
It may be hard to believe, but one can get compensated by the insurance company for accidents occurring from drunk driving. According to Avadhoot Mavlankar, principal officer, Shinrai Insurance Broking, “Motor Vehicle Act, 1988 in India is considered a strict law by the insurance companies. Insurance is a contract between the insurer and the insured. There is no privity of contract between the insurer and a third party who suffered in an accident. The law gives the insurance company a limited right to defend against a third party. Even if the car driver is drunk, and at fault in an accident, MACT will give compensation to the third party, and it will have to be paid by the insurance company. In 99% of cases, the insurer will not be able to recover the money from the insured.”
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