One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
TL;DR: You are not liable to pay the other driver’s voluntary deductible or NCB loss—those stem from their own insurance choices. A police threat over a purely civil money dispute has no legal basis. Only actual repair costs that remain uncovered after their insurer’s payout (and only the mandatory deductible component) may fall on you, and that too only if you were at fault.
Rohan Gupta, a software professional in Nagpur, rear-ended a Maruti Swift waiting at a signal on 10 May 2025. No one was hurt. Both parties filed own‑damage claims — Rohan with his Bajaj Allianz policy, the other driver, Priya Desai, with her HDFC Ergo zero‑depreciation cover. Priya’s insurer settled the repair bill but left a shortfall. She had opted for a ₹5,000 voluntary deductible, plus a ₹1,000 mandatory deductible, and her claim also triggered a loss of no‑claim bonus. Priya wanted Rohan to cover every rupee: the two deductibles, the insurer‑unpaid portion, and ₹3,200 for the estimated NCB hit. When Rohan offered to pay only the mandatory deductible and the balance repair cost after insurance, Priya sent a WhatsApp message: “Pay everything or I’ll file a police complaint.” That threat rattled Rohan. He had no idea whether a car accident could land him in a criminal case. A general‑practice advocate told him to just pay up and avoid hassle. But the sum was nearly ₹14,000 — unfair, Rohan felt. He approached the Chamber of Advocate Sudhir Rao. The office of Advocate Sudhir Rao immediately identified that no cognisable offence existed. The demand was a civil claim, and Priya’s voluntary deductible and NCB loss were her own contractual burdens. A sharply worded legal notice pointing out the absence of criminality and the correct measure of damages put an end to the threats. Priya accepted the ₹4,800 that the law actually required — the mandatory deductible and the true uncovered repair cost.Key Facts of the Case
- Minor car accident in Nagpur on 10 May 2025, no injuries, only property damage.
- Both drivers claimed own‑damage insurance; the other driver held a zero‑depreciation policy with a voluntary deductible of ₹5,000.
- The other driver’s insurer paid the major repair amount but left a gap: mandatory deductible, voluntary deductible, and a small repair‑cost portion.
- The other driver also sought ₹3,200 for loss of No‑Claim Bonus, a future benefit she would now miss.
- Rohan offered to pay only the mandatory deductible and the insurer‑unpaid repair balance; he refused the voluntary deductible and NCB amount.
- The other driver threatened a police case for the full demanded amount via WhatsApp.
- No criminal complaint was ever registered — the threat was only a pressure tactic.
The Direct Legal Answer
Do I have to pay the other driver’s voluntary deductible and NCB loss?
No. A voluntary deductible is a pre‑agreed self‑retention between the policyholder and her insurer. It reduces her premium. She cannot pass that choice‑borne cost to you. NCB loss is a future discount the other driver won’t receive on renewal. That’s not a direct loss caused by the accident. Your liability, if you were negligent, stops at the actual damage you caused — the repair bill minus what her own insurance paid, and minus her voluntary deductible. The mandatory deductible, however, is typically a standard policy feature and courts often treat it as part of the unrecovered loss you must make good.
Is a police case possible for not paying these amounts?
No. This is a civil dispute about money. No criminal offence — like cheating, criminal breach of trust, or mischief — arises from a genuine accident where you simply refuse to pay a disputed claim. The other driver may try to lodge a complaint alleging something fanciful, but police are required to examine whether a prima facie criminal case exists. When the facts reveal only a civil recovery claim, an FIR is unlikely to be registered, and if it is, it can be quashed. The threat itself is often a scare tactic.
Advice in Such Cases
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 to 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.
Don’t pay a single rupee without a detailed breakup from the other side’s insurer showing exactly what was deducted and why. If you have to pay, insist on a formal receipt. And here’s the thing — preserve every message, every email. Written demands make your case stronger. Matters like these need advocates who routinely handle motor‑accident claims and insurance litigation. General practitioners often miss the contractual nuance that separates a valid demand from an overreach.
Applicable Sections of Law
- Law of Torts (Negligence): The basis of your liability is the common law duty to compensate for harm caused by your negligent driving. It’s not a statutory penalty but a civil obligation.
- Section 73, Indian Contract Act, 1872: Damages can be claimed only for loss that naturally arose from the breach or was in the parties’ contemplation. Voluntary deductible and NCB loss don’t meet this test.
- Section 147, Motor Vehicles Act, 1988: Mandates third‑party insurance that covers liability for death, bodily injury, and property damage. Your own insurer’s liability is distinct.
- Indian Penal Code / BNS: No section attracts unless there is fraud, criminal intimidation, or a deliberate act of mischief. A mere accident and subsequent civil demand do not attract criminal liability.
Jurisdiction — Where to File the Case
If you need to initiate a civil suit for recovery (say, if you have a counterclaim) or to seek a declaration that no amount beyond a certain sum is owed, approach the Civil Judge (Junior Division) or Senior Division depending on the claim value. The suit lies where the accident occurred or where the defendant resides. For a claim under ₹2 lakhs, the Small Causes Court may also be available in cities like Nagpur. If the other driver files a false police complaint, you can approach the jurisdictional police station where the alleged occurrence took place. Treat any notice from police seriously — have your advocate present for any inquiry. But the starting point is not criminal court; it’s a civil recovery dispute.
Limitation Period
For a claim for damages arising from negligence, the Limitation Act, 1963 prescribes three years from the date of the accident. If the other driver wishes to sue you for the unrecovered amount, she must file within that window. Missing it can be fatal, though courts may condone delay in genuine cases. You should note the date of the accident and preserve evidence at least until the three‑year period lapses.
Interim Reliefs Available
- Injunction: If the other party is harassing you with repeated threats of criminal complaint, you can seek an injunction against filing false police reports — though courts are cautious here.
- Order 38 CPC (Attachment before judgment): Not typically used in your position, but if you fear the other side might alienate property to avoid paying a potential costs order, you could seek attachment.
- Status quo: In a civil suit, the court can direct both sides to maintain the present state until the dispute is resolved.
Interim reliefs matter because they set the power dynamic early. They also show the other side that you’re prepared to litigate intelligently.
If You Are the Victim
- Collect the insurance claim settlement letter showing every deduction.
- Demand only the actual repair cost you genuinely bore, minus what insurance covered.
- Never issue threats — they can backfire and weaken a legitimate civil claim.
- Send a polite but firm legal notice asking for the specific, legally recoverable sum.
- If the at‑fault driver refuses, file a civil recovery suit, not a police complaint.
Documents You Must Keep Ready
- Aadhaar card or PAN card for identity.
- Driving licence and vehicle registration certificate.
- Copy of your own insurance policy and claim settlement.
- Accident photographs and location details.
- Repair estimates and final invoices from the garage.
- Any written communication — WhatsApp chats, emails, SMS — where the other side demands money or threatens police action.
- Insurance company’s break‑up of settlement (theirs and yours).
- FIR copy, if one was actually registered (though unlikely here).
What Evidence Is Required?
- Admission of fault or negligence, if any, in messages or statements.
- Garage repair bill and proof of payment — these anchor the actual loss.
- Insurance policy documents showing deductibles and coverage terms.
- Photographs of vehicle damage from both sides.
- Any dashcam footage or CCTV from the accident spot.
- Written threats demanding money — these are crucial to show overreach.
- Bank statements showing insurance payouts and out‑of‑pocket expenses.
How Courts Typically Approach Such Cases
Courts treat these as simple motor‑accident civil claims. The judge will look at who was negligent, the actual repair cost, and the insurance payout. Unless the insurance contract says otherwise, the voluntary deductible and NCB loss are seen as the policyholder’s own risk decision. Courts rarely award those sums against the other driver. Most such disputes settle during negotiation, often after a legal notice. The court’s concern is to make good the actual property damage — nothing more. A demand padded with avoidable insurance charges often backfires on the claimant.
Timeline of Legal Process
- Legal notice (1‑2 weeks): Your advocate sends a reply or a demand notice.
- Negotiation (2‑4 weeks): Both sides exchange settlement terms; if agreed, matter closes.
- Filing of civil suit (if no settlement): Plaint filed, summons issued — 4‑8 weeks.
- Written statement by opposite party: 30‑90 days after summons.
- Framing of issues and evidence: 3‑6 months; trial dates depend on court backlog.
- Final arguments and judgment: Can take 12‑18 months in a busy civil court.
- Execution of decree: If you win and the other side doesn’t pay, another 3‑6 months.
In reality, most such matters don’t reach trial. A well‑crafted legal notice resolves the majority.
Understanding the Costs
The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.
A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.
Can the Matter Be Settled Out of Court?
Absolutely. Motor‑accident property damage claims are among the most settlement‑friendly disputes. You can agree on a mutually acceptable figure without ever entering a courtroom. Mediation at a private mediation centre or even a settlement recorded before a notary works. A compromise deed clearly stating that the amount paid is in full and final settlement of all claims arising from the accident prevents future litigation. If a suit is already filed, Section 89 CPC allows the court to refer the matter to mediation. Settlement avoids the cost, delay, and stress of trial. It’s almost always the smarter move.
Common Mistakes People Make
- Paying the entire demanded amount without seeing the insurer’s settlement breakup — you may be overpaying for someone else’s insurance choices.
- Ignoring legal notices or WhatsApp threats, thinking they’ll go away — silence can be used against you.
- Filing a police complaint when the dispute is purely civil — this can get you in trouble for misusing the criminal machinery.
- Deleting messages or failing to screenshot threats — vital evidence vanishes.
- Engaging a lawyer who does not regularly handle motor‑accident or insurance claims. The interplay between tort liability, policy deductibles, and criminal threat is nuanced. A generalist may not spot that a demand is legally untenable, costing you money and peace of mind.
- Taking the other side’s word about what the law says — always get independent legal advice.
FAQs People Normally Have
Can the other driver really register an FIR against me?
Only if a cognisable offence is made out. A dispute over money after an accident isn’t one. Police may call you for an inquiry, but a lawyer can handle that without panic.
Should I pay the mandatory deductible?
Generally, yes. That’s a standard uninsured portion the other party had to bear. But always verify that their insurer actually deducted it.
What if I wasn’t at fault?
Then you owe nothing. If both were partly negligent, the damages can be apportioned. Don’t accept full liability without analysing fault.
Is the NCB loss claim ever valid?
Almost never. Courts rarely entertain it because NCB is a contingent future benefit, not a direct accident loss.
What if I’ve already paid the full amount under pressure?
If you paid without a settlement deed, recovering the excess is tough but not impossible — you can file a civil suit for recovery of money paid under coercion. Time is crucial, so don’t delay.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India