All You Need to Know About Section 166 of the Motor Vehicle Act, 1988

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Ramesh owns two cars and one of his cars met with an accident and contacted the insurance company for making a claim. The insurer conducted an inquiry to check the records and other things and rejected his claim. This troubled him greatly, thus he consulted a lawyer and filed a case in the tribunal for compensation.

Most of us do not want to get into a legal hassle and thus it is in our interest that we know about the salient features of the Section 166 of the Motor Vehicle Act, 1988.

What is the Motor Vehicles Act, 1988?

The Motor Vehicles Act was first introduced in 1914 to address the grievances of people who wanted to get a financial protection in case of accidents. It was replaced in 1934 to regulate road transport. In 1988, the Government of India made some changes in the act to protect the interests of motor vehicle owners.

An insurance plan is necessary for you if you have a vehicle be it a two-wheeler or a car. It not only provides financial protection in case of accidents and other damage but is also a legal obligation. The Motor Vehicle Act comes with salient features which look into the interest of the policyholders.

This act comprehensively covers all the aspects of road transport on the roads which ensure the welfare of the third party. If you are severely affected by accidents and injuries, then you can appeal under this act. A motor vehicle tribunal will govern the cases that come under the Motor Vehicles Act, 1988. The primary objective of this tribunal is to ensure the speedy trial of cases to make sure that you get the right justice on time. It deals with the cases that involve injuries, loss of life, or property allowing you to obtain maximum compensation.

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What is section 166 of the Motor Vehicles Act, 1988?

The Section 166 of Motor Vehicles Act, 1988 talks about who can apply for compensation in Motor Accidents Claims Tribunal (MACT). It allows you to get a clear picture of the facts in detail that will help file a case in case there is a need.

You can claim compensation for the following cases in the tribunal.

  • If you have sustained an injury
  • If you are the owner of the property
  • When you are the legal representative of a person who died in an accident
  • If you are an agent authorized by the injured person

How can you claim this compensation?

You can claim compensation by applying with either one of the following tribunal locations.

  • If you are the owner of the vehicle and residing in the claims tribunal area
  • If you are a claimant and resides near the claims tribunal
  • The claims tribunal where the accident took place

When can you claim compensation?

There is no time limit prescribed by the motor act if you want to file a case. On the other hand, delaying too much will lead to doubts and suspicion in the minds of tribunal members. Therefore, you should file a case as soon as possible that will help receive the compensation in a quick turnaround time. The tribunal will provide compensation in the following cases.

  • When the accident caused injury to your body
  • Death of your blood relatives
  • If the accident has caused severe damage to your property
  • When accidents occur mainly due to the use of motor vehicles

Types of claims that come under assessment 

1. No-fault liability 

The no-fault liability in motor vehicle act comes under section of act 140. If you are a claimant, then there is no need to prove that the fault lies with the other party.  There is no joint liability and it arises when you are permanently disabled. When your family member dies, then you can claim Rs, 50, 000, and Rs. 25,000 in case of permanent disability.

2. Hit and run 

It comes under section 161 of India Motor vehicle 1988 act and you can claim the amount for your injuries when the prime accused runs away from the accident area. You will obtain compensation of Rs. 12500 and your legal representative will get Rs. 25000 upon your death.

Know more about damage assessment 

If you are suffering from physical damages due to accidents, then you should know more about the damage assessment in detail. The tribunal will classify the damage under pecuniary damage and non-pecuniary damage. As a victim, you should consult with a lawyer to know the salient features of motor vehicle act 1988 before filing a case. This will help in filing your case with ease.

Understand more about third-party insurance

If you are a vehicle owner, then you should understand more about third-party insurance. It is necessary for you when you have a bike or a car.  Your insurer will pay the amount to the third-party when your vehicle causes injury to someone on the road.  Most insurance companies offer comprehensive and third-party insurance plans which are available online too.

Offenses and penalties under the Section 166 Motor Vehicles Act, 1988

  • You shouldn’t drive a vehicle without a license and before becoming a major
  • You shouldn’t ride a vehicle under the influence of alcohol and drugs
  • Over speeding is an offence and should be avoided on the roads
  • Driving your vehicle when you are suffering from any medical condition and health issues
  • Not wearing helmet in a two-wheeler and seat belt in a car

You should follow the traffic and safety rules while riding a vehicle on the road to avoid fines and penalties.

Also Read: Does it make Sense to File Small Car Insurance Claims?

The bottom line

The Indian motor vehicle act is mainly meant for regulating road transport and they need proper implementation to bring down the increasing number of accidents. If you are a vehicle owner, then make sure that you follow the rules and do not cause any disturbance to others on the roads. Getting the right insurance policy is also mandatory under the Motor Vehicle Act. Understanding the motor vehicle act and things related to motor insurance is made easy with PayBima expert team. The team provides assistance in ascertaining the right insurance option for your on-road needs.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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