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

Mr. Kumar’s father, Mr. Sharma, was tragically killed in a road accident while traveling to the city’s main railway station in a cab booked through the “RideHail Cabs” app. The cab company has a rider insurance policy with “SecureFuture Insurance,” and their representatives are actively following up with Mr. Kumar to process the insurance claim. They have requested the nominee’s documents to release the payment. Mr. Kumar is concerned whether accepting this insurance payout will prevent him from claiming rightful compensation from RideHail Cabs for the fatal accident caused by their service.

Advice in such cases

This is a situation with two distinct claims: one based on an insurance contract and the other based on legal liability (tort/statutory law). Generally, accepting a payout from a personal accident insurance policy does not prevent you from seeking compensation for negligence. The insurance payout is a contractual benefit for the rider, while the compensation claim is a legal remedy against the negligent party (the driver, the vehicle owner, and the aggregator company). However, it is crucial to carefully review the terms and conditions of any document you sign with the insurance company to ensure you are not inadvertently waiving your right to further legal action.

Applicable Sections of Law

The legal framework for such incidents involves multiple statutes:

• The Motor Vehicles Act, 1988 (as amended): This is the primary legislation governing motor accident compensation claims in India. Claims are filed before the Motor Accidents Claims Tribunal (MACT).
• The Bharatiya Nyaya Sanhita, 2023 (BNS): Section 106 of the BNS deals with causing death by a rash or negligent act. This forms the basis of the criminal case against the driver.
• The Indian Contract Act, 1872: This Act governs the insurance policy, which is a contract between the insured (the rider, in this case) and the insurance company.
• Law of Torts: The principles of negligence and vicarious liability are central to establishing the fault of the driver and the liability of the cab owner and aggregator.

If you are the complainant

As the legal heir of the deceased, you are the complainant seeking justice and compensation. Your course of action should be systematic:

• Consult with Lawyer: The very basic and important step to start is to talk to a lawyer/advocate. You should not hesitate in paying his consultation fee, which might be in the range of Rs. 10,000 to 50,000, depending on the case. He is helping you come out of this situation. He is an expert in the domain and can help you understand the procedure, which you might have never explored. A good lawyer can get the issues resolved in 7-10 days.
• Preserve Evidence: Gather all necessary documents, including the death certificate, post-mortem report, FIR, and the insurance policy details provided by RideHail Cabs.
• File a MACT Claim: Your lawyer will help you file a claim petition before the Motor Accidents Claims Tribunal for compensation. This is separate from the insurance payout.
• Scrutinize Insurance Documents: Before accepting the insurance money, have your lawyer review the claim form and any settlement voucher. Ensure that signing it does not waive your right to pursue a larger claim through the MACT. Do not sign any “full and final settlement” document without legal counsel.

If you are the victim

In a fatal accident case, the legal heirs step into the shoes of the victim. The rights of the victim’s family are:

• Right to Compensation: The legal heirs have a statutory right to be compensated for the loss of dependency, loss of consortium, funeral expenses, and loss of estate under the Motor Vehicles Act.
• Right to Insurance Claim: As a nominee, you have the right to receive the sum assured under the personal accident insurance policy. This is a contractual right.
• Right to Justice: You have the right to see the criminal proceedings against the negligent driver through to their conclusion.

How the police behave in such cases

The police play a critical role in the initial stages. Upon being informed of a fatal accident, they are mandated to:

• Register an FIR: An FIR (First Information Report) will be registered immediately, usually under Section 106 of the BNS, against the driver of the vehicle.
• Conduct Investigation: The police will investigate the accident, collect evidence from the scene, record witness statements, and seize the involved vehicle for mechanical inspection.
• Prepare a Detailed Accident Report (DAR): As per legal mandates, the police must prepare a DAR, which contains all relevant information like the FIR, site plan, vehicle and driver details, and insurance particulars. This DAR is filed directly with the MACT to initiate the claim process, helping the victim’s family.

FAQs people normally have

Can I accept the insurance money from SecureFuture Insurance and still file a case for compensation against RideHail Cabs?

Yes. The personal accident insurance is a benefit of the contract and is separate from the compensation for negligence filed before the MACT. The Supreme Court has held that amounts received under such contractual insurance policies are generally not deductible from the compensation awarded by the MACT. However, it’s vital that the documents you sign are not worded as a “full and final settlement” of all claims arising from the accident.

Who is legally responsible to pay compensation – the driver, the cab owner, or RideHail Cabs?

Liability is often shared. The driver is liable for his negligence. The vehicle owner is vicariously liable for the driver’s actions. The cab aggregator, RideHail Cabs, can also be held liable as a service provider that failed to ensure passenger safety. The compensation awarded by the MACT is typically paid by the third-party insurer of the vehicle.

How does the MACT calculate the amount of compensation?

The MACT calculates compensation based on a multiplier method. It considers the deceased’s age, established income, future prospects of income increase, and the number of dependents. Specific amounts are also awarded under conventional heads like loss of consortium, loss of estate, and funeral expenses, as laid down by the Supreme Court.

What evidence is required?

To file a robust claim, you will need the following documents:

• Copy of the FIR.
• The Detailed Accident Report (DAR) prepared by the police.
• Post-mortem report.
• Death certificate of the deceased.
• Proof of age of the deceased (e.g., Aadhar card, birth certificate).
• Proof of income of the deceased (salary slips, income tax returns, bank statements).
• Documents establishing the relationship of the claimants with the deceased.
• Original bills for any expenses incurred.

How long will the investigation take?

The police investigation and filing of the charge sheet typically take 2-3 months. The claim process in the MACT can be more prolonged. While tribunals are encouraged to expedite cases, a final award can take anywhere from a year to a few years, depending on the complexity of the case and the tribunal’s workload.

Advocate Sudhir Rao, Supreme Court of India