If A Road Accident Victim Has No Insurance, Can The Family Still Get Compensation?


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Having third-party insurance ensures if a vehicle causes injury or death, the insurance company must compensate the victim’s family, even if the deceased had no insurance coverage

The Motor Vehicles Act, 1988 ensures compensation for road accident victims and their families. (Representative/PTI)

In the event of a road accident where a family’s sole breadwinner loses their life without having life insurance, the question of financial support naturally arises. Under the Motor Vehicles Act, 1988, such families may be entitled to compensation, providing a legal route for financial assistance in the absence of insurance.

The Motor Vehicles Act, 1988 provides a legal framework to offer compensation to victims of road accidents or their families. This law includes two important provisions—Section 163A and Section 166—that deal with compensation claims.

Section 163A of the Motor Vehicles Act allows the family of a person who dies in a road accident to claim compensation without having to prove who was at fault. Even if it is unclear who caused the accident or how it happened, compensation can still be granted. This is known as a “no-fault claim” and is especially helpful for families, as gathering accurate details about an accident can often be difficult.

On the other hand, Section 166 of the Motor Vehicles Act applies when it is clear that the accident was caused by someone else’s negligence. In such cases, the victim’s family can claim compensation from the vehicle owner or their insurance company, but they must prove that the other party was at fault. For example, if a truck is driven recklessly and causes a fatal accident, the family can seek compensation by proving the truck driver’s negligence in court.

What If The Deceased Did Not Have Insurance

Even if the deceased did not have personal insurance, the family may still be eligible for compensation. In India, it is mandatory for all vehicle owners to have third-party insurance. This ensures that if their vehicle causes injury or death to someone, the insurance company is liable to compensate the victim’s family—regardless of whether the deceased had any insurance coverage.

What Happens In Hit-And-Run Cases

Many times, the driver responsible for an accident flees the scene, and no information is available about the vehicle or the driver. Such incidents are known as hit-and-run cases. In these situations, the victim’s family cannot claim compensation from any insurance company or individual, as the offender remains unidentified.

To address this, the government launched the Motor Vehicles Accident Fund in 2022. Under this scheme, families of those who die in a hit-and-run accident are entitled to a compensation of Rs 2 lakh, while those who suffer serious injuries receive Rs 50,000.

This initiative is especially important for low-income families or those who lack the means and resources to pursue a legal battle. It provides essential financial relief in times of crisis.

Can Compensation Be Obtained Without A Lawyer?

Yes, it is not mandatory to hire a lawyer to claim compensation. India has special courts called Motor Accident Claims Tribunals (MACT) that handle compensation cases related to road accidents. The victim’s family can approach MACT directly to file a claim. The claim can be submitted in the district where the accident occurred or where the family resides.

Importantly, if the family cannot afford legal representation, government legal aid services or certain non-governmental organisations (NGOs) offer free assistance. They help with filing the claim and managing the necessary paperwork. MACT examines the case, and if the claim is found valid, it directs the insurance company or the government to provide compensation.

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