If you are stuck in such a situation, here is what to do.

Mr. Verma, a resident of Alipur, owns multiple vehicles and diligently pays a significant amount annually for comprehensive car insurance policies. He has often found himself in a frustrating situation where his vehicles are damaged due to the negligence of other drivers on the road. This leads to him making claims on his own insurance, potentially affecting his No-Claim Bonus (NCB) and future premiums. He is seeking to understand the legal avenues available to recover the costs of these damages directly from the insurance company of the person at fault, rather than bearing the burden himself.

Advice in such cases

When your vehicle is damaged in an accident due to someone else’s fault, it is crucial to act methodically to protect your rights and ensure you can recover the damages.

• Stay Calm and Ensure Safety: Immediately after an accident, ensure everyone is safe. Move your vehicle to the side of the road if possible to avoid further incidents.
• Do Not Flee the Scene: Leaving the scene of an accident can have serious legal consequences.
• Exchange Information: Collect the name, contact number, address, driving license details, and vehicle registration number of the other driver. Crucially, get the details of their car insurance policy, including the company name and policy number.
• Document Everything: Take clear photos and videos of the accident scene from multiple angles. Capture the position of the vehicles, the damage to both cars, any visible landmarks, and the license plates.
• Look for Witnesses: If there are any bystanders who witnessed the accident, request their names and contact details. Their testimony can be invaluable.
• File a Police Report: Go to the nearest police station and file a First Information Report (FIR). This is a mandatory step for making a third-party insurance claim.
• Inform Your Insurer: Even if you plan to claim from the other party’s insurance, you should inform your own insurance company about the incident as a precautionary measure.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

The primary law governing such cases is the Motor Vehicles Act, 1988 (as amended). Key provisions include:

• Section 146 of the Motor Vehicles Act, 1988: This section mandates that no person shall use a motor vehicle in a public place unless there is a valid insurance policy covering third-party risks.
• Section 166 of the Motor Vehicles Act, 1988: This section allows a person who has sustained an injury or whose property has been damaged to file an application for compensation with the Motor Accidents Claims Tribunal (MACT).
• Bharatiya Nyaya Sanhita (BNS): If the accident was caused by rash and negligent driving, criminal proceedings can also be initiated against the at-fault driver under the relevant sections of the BNS, which can strengthen your compensation claim.

If you are the complainant

As the person whose property has been damaged (the complainant), you are entitled to seek compensation from the person who caused the accident.

• Initiate Legal Action: The primary route is to file a claim petition before the Motor Accidents Claims Tribunal (MACT) having jurisdiction over the area where the accident occurred or where the defendant resides.
• Appoint a Surveyor: It is advisable to have the damage to your vehicle assessed by an authorized surveyor. Their report will form the basis of your claim for damages.
• Notify the Opponent’s Insurer: A legal notice can be sent to the driver, owner, and their insurance company, detailing the accident, the damages incurred, and the intention to seek compensation.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

If you are the victim in this scenario (the one whose car was hit), your focus should be on building a strong case to recover your losses.

• Preserve Evidence: Do not get your car repaired immediately. The insurance company of the at-fault party will want to inspect the vehicle to assess the damage. Wait until their surveyor has completed the inspection.
• Maintain Records: Keep all documents in order, including the FIR, medical reports (if any), original repair estimates, and final repair bills and receipts.
• Claim Filing: Your lawyer will file a claim petition in the MACT against the driver, the owner of the vehicle, and their insurance company. The insurance company is legally bound to pay the compensation awarded by the tribunal.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

The police play a critical role in the initial stages of a motor accident claim. Upon receiving a complaint, they are required to register an FIR. Their investigation involves visiting the accident spot, preparing a site map (spot panchnama), seizing the vehicles for mechanical inspection, and collecting documents like driving licenses, registration certificates, and insurance papers from both parties. The police will then file a charge sheet in the criminal court if an offense like rash driving is made out. They also prepare a Detailed Accident Report (DAR) and file it with the MACT, which is a crucial document for your claim.

FAQs people normally have

Can I claim from my own “Own Damage” insurance and also from the third party’s insurance?

No, you cannot claim compensation for the same damage twice. You can either claim from your own comprehensive policy (which is faster but may affect your NCB) or file a case in the MACT to claim from the at-fault party’s third-party insurance (which preserves your NCB but is a longer process). If you claim from your own insurer, they may in turn use the principle of subrogation to recover the amount from the at-fault party’s insurer.

What if the driver who hit my car has no insurance?

If the at-fault vehicle is uninsured, the claim for compensation in the MACT will be filed against the driver and the owner of the vehicle. The owner becomes personally liable to pay the compensation awarded by the tribunal. Recovering this amount can be more challenging than from an insurance company.

What evidence is required?

To file a successful claim with the MACT, you will need a comprehensive set of documents:

• The original FIR or its certified copy.
• The charge sheet filed by the police.
• Driving licenses of both drivers.
• Registration Certificates (RC) of both vehicles.
• Insurance policy documents of both vehicles.
• Photographs of the accident scene and the damaged vehicle.
• Damage assessment report from a surveyor.
• Original bills and receipts for repairs.
• Any medical records and bills if you sustained injuries.

How long will the investigation take?

The police investigation and filing of the charge sheet typically take a few weeks to a couple of months. The proceedings in the Motor Accidents Claims Tribunal, however, are a judicial process and can be lengthy. Depending on the complexity of the case and the workload of the tribunal, it can take anywhere from several months to a few years to get a final award.

Advocate Sudhir Rao, Supreme Court of India