All You Need to Know About Section 166 of the Motor Vehicles Act, 1988
The Motor Vehicles (MV) Act, 1988 has been a landmark legislation that servesRead more
Understanding the Motor Vehicles Act, 1988
The Motor Vehicles Act, 1914 came into force for the regulation of vehicles involved in road accidents. This act was further replaced by the Motor Vehicles Act, 1939.
Later, the urgent and rising need for an improved legislation process that can cover all the facets of vehicular accidents through its provisions led to the emergence of the Motor Vehicles Act, 1988. It was implemented on 1st of July, 1989 and replaced the Act of 1939. Here are some of its salient features:
- Providing for the welfare of the public after they involuntarily get involved in an accident
- Its provisions ensure the welfare of the 'Third-Party'. Third party insurance includes all those who were at no fault in an accident but got involved due to ignorant and reckless driving by others, hence becoming a party to the incident.
- This particular act comprehensively covers all the aspects involved in the transport of vehicles on the road
- The act mandates carrying valid motor insurance while driving on Indian roads, making third-party car insurance the most basic compulsory document
What is Section 166 of the Motor Vehicles Act?
Section 166 of the Motor Vehicles Act, 1988 is the primary legal provision in India that allows road accident victims or their families to claim financial compensation through MACT. Unlike other provisions that provide immediate and fixed relief, Section 166 is a fault-based claim where one can seek compensation by proving the negligence of the other driver. As per Section 166, compensation can be claimed through MACT if an individual:
- Has sustained an injury in the accident
- Is the owner of the property damaged/involved in the accident
- Is a legal representative of the person who passed away in the road accident
- Is an authorized agent of the injured party or the legal representatives of the person deceased in the accident.
Please note that in such cases, the 'Owner', under section 2(30) of the act, will be classified as the person whose name stands registered with the motor vehicle, and in the case of a minor, the person who is the guardian of the involved minor.
Where to Claim Compensation Under Section 166 of the Motor Vehicles Act?
You can file an application for compensation under section 166 with either one of the following tribunal locations:
- Where the owner of the vehicle is residing in
- Where the claimant is residing in
- Which occurs to be in the location where the accident took place
When to Claim Compensation Under Section 166 of the Motor Vehicles Act?
Even though there is no prescribed time limit within which the application for the claim is to be filed, it should still be ensured that it is done within a reasonable amount of time. Doing otherwise can raise queries and doubts in the tribunal. Compensation is awarded to the concerned party by the tribunal in the following cases:
- When the accident has resulted in injury to their body or even death
- When the accident has caused loss/damage to their property
- When the accident has compulsorily risen out of motor vehicles
What Amount Can be Claimed as Compensation Under Section 166?
When a compensation claim is filed under Section 166 of the Motor Vehicles Act, 1988, the amount payable is decided based on who was at fault in the accident. There is no fixed or minimum compensation amount under this section. The MACT determines the compensation after considering the following factors:
- Victim's Income
- Age
- Medical Expenses
- Nature of injuries/disability
- Loss of dependency
But, as per Section 140 of the MV Act, the vehicle owner or insurance company has to pay a fixed compensation on a no-fault basis, even before the final decision is made:
- Rs. 50,000 in case of death
- Rs. 25,000 in case of permanent disability
This amount acts as immediate relief and does not affect the final compensation provided under Section 166 of the MV Act.
What are the Key Differences Between Section 166 and Section 163A?
Here is a table that shows differences between Section 166 and 163A of the Motor Vehicles Act, 1988:
| Basis |
Section 166 |
Section 163A |
| Nature of Claim |
Fault-based |
No-fault |
| Proof of Negligence |
Required |
Not Required |
| Compensation |
Decided by MACT |
Based on Structured Formula |
| Income limit |
No Limit |
Subject to Statutory Limits |
How to File Compensation Under Section 166 of the Motor Vehicles Act?
Here is the procedure to file a compensation claim under Section 166 of MV Act:
- Determine your Eligibility: As per the Section 166 of MV Act, the injured person, the owner of damaged property, or the legal representatives of a deceased person can file a claim in case of a road accident.
- Keep Necessary Documents Handy: Essential documents such as the Police FIR, bills, medical reports, and proof of income (if applicable), among others, should be ready to support your claim.
- Application for Compensation: Submit a detailed application to claim compensation, along with the required documents, with the MACT in the area where the accident occurred, where you reside, or where the defendant resides.
- Attend Tribunal Hearings: You need to attend hearings and provide evidence to support your claim. Remember that you have six months from the accident date to file your claim. However, MACT can entertain the application after six months but not later than twelve months provided it is satisfied that the applicant was prevented by sufficient cause from making the application in time.
Also Read: What is Section 184 of the Motor Vehicles Act?
Conclusion
Section 166 of the Motor Vehicles Act essentially protects the rights of road accident victims by providing a legal remedy to claim compensation through MACT. Since it is a fault-based claim, establishing the other individual's negligence is necessary. Besides, it is equally important to protect your vehicle with a valid motor insurance policy. Before obtaining car insurance for your four-wheeler, it is beneficial to compare quotes from multiple insurers and then choose the coverage that best matches your needs.
