Do you know? There were 53 accidents and 19 deaths every hour across India in 2022! According to official data, the total number of road accidents across India in 2022 was 4,61,312. These accidents led to 1,68,491 deaths and 4,43,366 injuries across the country.

But wait, why are we talking about road accidents? 

Well, data shows that most of the people dying in road accidents are in the age group of 15 to 49 years. This is also the age group to which a majority of the working population belong to.

Road accidents always have a devastating effect on victims and their families. In such a situation, it is important to know how road accident claim settlement works. The following are a few important points that you should know:

Which rule provides for motor insurance claim settlement?

Section 163A of the Motor Vehicles Act, 1988 provides the criterion for settlement of claims arising out of road accidents.

Who decides the compensation?

The amount of compensation is decided by the Motor Accident Claims Tribunals (MACT).

What is the criteria for deciding the compensation amount?

The compensation amount decided by MACT is generally based on the road accident victim’s age, income/wages, family responsibilities, life expectancy and previous judgements/directions etc.

Also Read: What is the difference between Claim Settlement Ratio and Incurred Claim Ratio in Health Insurance?

What is the road accident claim procedure?

Rule 150A of Central Motor Vehicles (fifth Amendment) Rules, 2022 provides the procedure for road accident claim.

After receiving a claim intimation, the insurance company designates an officer to settle the claim. This officer makes an offer to the claimant for settlement before MACT.

In case the claimant accepts the proposal, the MACT records such settlement and the claim is deemed to be settled.

When is the payment done?

After the claim is settled, the insurance company is required to make the payment to the claimant within 30 days from the date of receipt of record of settlement.

What happens when the claimant rejects the offer?

In case the claimant rejects the offer, then the tribunal decides the award on the merits of the case. In this case also, payment by the insurance company is to be made within 30 days of the date of announcing the award by the claims tribunal.

Where can you register grievances?

In case the claimant/victims want to register grievances related to motor claim, they can do so on the Bima-Bharosa portal of IRDAI.

In 2023-24 (till Nov 2023), as many as 10,242 grievances were registered on this portal.

Always Drive Safe!

Data Source: Ministry of Road Transport and Highways, Lok Sabha

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