(1) On receipt of an application for compensation made under section 166, the Claims Tribunal shall, after giving notice of the application to the insurer and after giving the parties (including the insurer) an opportunity of being heard, hold an inquiry into the claim or, as the case may be, each of the claims and, subject to the provisions of section 162, may make an award determining the amount of compensation which appears to it to be just and specifying the person or persons to whom compensation shall be paid. In making the award, the Claims Tribunal shall specify the amount which shall be paid by the insurer or owner or driver of the vehicle involved in the accident or by all or any of them, as the case may be:
Provided that where such application makes a claim for compensation under section 140 in respect of the death or permanent disablement of any person, such claim and any other claim (whether made in such application or otherwise) for compensation in respect of such death or permanent disablement shall be disposed of in accordance with the provisions of Chapter X.
(2) The Claims Tribunal shall arrange to deliver copies of the award to the parties concerned expeditiously and in any case within a period of fifteen days from the date of the award.
(3) When an award is made under this section, the person who is required to pay any amount in terms of such award shall, within thirty days of the date of announcing the award by the Claims Tribunal, deposit the entire amount awarded in such manner as the Claims Tribunal may direct.
Simplified Explanation
Section 168 of the Motor Vehicles Act deals with the award of compensation by the Motor Accident Claims Tribunal (MACT). This section outlines the process through which the tribunal determines and grants compensation to victims of motor vehicle accidents, or their legal representatives, based on the evidence presented during the hearing of a claim.
Overview of Section 168
Section 168 provides the legal framework for the Motor Accident Claims Tribunal to investigate the claim and award compensation after determining liability and assessing the losses suffered by the claimant due to the accident. The tribunal is empowered to decide the appropriate compensation based on factors such as the extent of injuries, the death of the victim, property damage, and other related losses.
Key Elements of Section 168
- Investigation by the Tribunal:
- Upon receiving an application for compensation, the tribunal conducts an investigation to determine the facts and liability for the accident. This includes examining the evidence presented by the claimant, the respondent (vehicle owner, driver, or insurance company), and any witnesses.
- The tribunal considers the circumstances of the accident, the extent of injuries or death, and the financial impact on the victim or their family.
- Determination of Compensation:
- After investigating the case, the tribunal determines the amount of compensation to be awarded to the claimant or their legal representatives.
- The compensation is calculated based on:
- Medical expenses (including future medical care).
- Loss of income due to injury or death.
- Funeral expenses (in case of death).
- Loss of consortium (compensation to family members for the loss of companionship).
- Property damage (if applicable).
- Non-economic damages, such as pain, suffering, and mental agony.
- The tribunal may also take into consideration the age, occupation, and income of the deceased or injured person to assess the appropriate compensation.
- Reasoned Award:
- The Claims Tribunal is required to pass a reasoned order when awarding compensation, explaining the basis for its decision, including the extent of liability and how the compensation amount was calculated.
- The award must be based on the facts and evidence presented during the proceedings.
- Interest on Compensation:
- The tribunal can also award interest on the compensation amount from the date of filing the application until the actual payment of compensation is made. This is meant to ensure that claimants are fairly compensated for the delay in receiving their award.
- Liability to Pay Compensation:
- The tribunal identifies the party responsible for paying the compensation, which could be the vehicle owner, driver, or the insurance company (depending on the insurance coverage and the circumstances of the accident). If the vehicle is insured, the insurer is typically held liable for the payment.
- Binding Award:
- The award made by the Claims Tribunal is binding on the parties involved. However, if any party is dissatisfied with the decision, they can appeal to a higher court.
- Payment of Compensation:
- Once the award is made, the responsible party (usually the insurance company) must pay the compensation within a stipulated time. Failure to do so can result in legal consequences, including penalties and additional interest.
Practical Implications
- Fair Compensation: Section 168 ensures that victims of motor vehicle accidents or their families receive fair and adequate compensation for their losses, covering both economic and non-economic damages.
- Efficient Legal Process: By providing a structured approach for investigating claims and awarding compensation, the section ensures a more efficient process for resolving accident-related claims.
- Deterrence for Negligent Parties: The potential for significant compensation awards acts as a deterrent for drivers and vehicle owners to avoid negligent or reckless behavior on the road.
- Security for Victims: Victims of motor vehicle accidents, or their families, can rely on the tribunal’s process to obtain financial relief for medical bills, lost income, and emotional suffering, even if the accident resulted in death or permanent disability.
- Interest Payments: The provision for interest payments on delayed compensation ensures that claimants are not financially disadvantaged due to delays in the legal process.
Conclusion
Section 168 of the Motor Vehicles Act empowers the Motor Accident Claims Tribunal to investigate claims and award fair compensation to accident victims or their legal representatives. By ensuring that compensation is calculated based on actual losses and supported by a reasoned order, this section promotes justice and accountability in motor vehicle accident cases. It also ensures that victims receive timely financial relief, helping them cope with the economic and emotional fallout of such accidents.
