CLAIMS TRIBUNAL

INTRODUCTION

The Motor Vehicles Act, 1988 is an Act of the Parliament of India which regulates all the aspects
of road transport vehicles. This Act came into force from 1 July 1989. This act replaced the
previous motor vehicle act 1939 which earlier replaced the motor vehicle act 1914. Motor
vehicles act created a new forum named motor accidents claims tribunals which substituted civil
courts in order to provide cheaper and speedier remedy to the victims of accident of motor
vehicle. The following sections of the Act deal with claims tribunal:-

165. A State Government may, by notification in the Official Gazette, constitute one or more
Motor Accidents Claims Tribunals (hereafter in this Chapter referred to as Claims Tribunal) for
such area as may be specified in the notification for the purpose of adjudicating upon claims for
compensation in respect of accidents involving the death of, or bodily injury to, persons arising
out of the use of motor vehicles, or damages to any property of a third party so arising, or both.

CONSTITUTION

A Claims Tribunal shall consists of such number of members as the State Government may
think fit to appoint and where it consists of two or more members, one of them shall be
appointed as the Chairman thereof.

(3) A person shall not be qualified for appointment as a member of a Claims Tribunal unless he-

(a) is, or has been, a Judge of a High Court, or

(b) is, or has been, a District Judge, or

(c) is, qualified for appointment as a High Court Judge 2[or as a District Judge].

(4) Where two or more Claims Tribunals are constituted for any area, the State Government,
may by general or special order, regulate the distribution of business among them.

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APPLICATION FOR COMPENSATION (SECTION 166)

(1) An application for compensation arising out of an accident of the nature specified in sub-
section (1) of section 165 may be made-

(a) by the person who has sustained the injury; or

(b) by the owner of the property; or

(c) where death has resulted from the accident, by all or any of the legal representative of the
deceased; or

(d) by any agent duly authorised by the person injured or all or any of the legal representative of
the deceased, as the case may be.

Provided that where all the legal representative of the deceased have not joined in any such
application for compensation, the application shall be made on behalf of or for the benefit of all
the legal representative of the deceased and the legal representative who have not so joined, shall
be impleaded as respondents to the application.

3[(2) Every application under sub-section (1) shall be made, at the option of the claimant, either
to the Claims Tribunal having jurisdiction over the area in which the accident occurred or to the
Claims Tribunal within the local limits of whose jurisdiction the claimant resides or carriers on
business or within the local limits of whose jurisdiction the defendant resides, and shall be in
such form and contain such particulars as may be prescribed.

Provided that where no claim for compensation under section 140 is made in such application,
the application shall contain a separate statement to that effect immediately before the signature
of the applicant.]

2[(4) The Claims Tribunal shall treat any report of accidents forwarded to it under sub-section
(6) of section 158 as an application for compensation under this Act].

AWARD OF THE CLAIMS TRIBUNAL –(SECTION 168)

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 (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 sections of section 162 may make an award
determining the amount of compensation which appears to it to be just and specifying the person
or person or person to whom compensation shall be paid and 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.

PROCEDURE AND POWERS (SECTION 169)

 Motor Accidents Claims Tribunal has been created by the Motor Vehicles Act, 1988. It has been
constituted to provide speedier remedy to the victims of accident by motor vehicles. The
Tribunals takes away jurisdiction of Civil Courts in the matters which concerns the Motor
Accidents Claims Tribunal. Appeals from Claims Tribunal lies with High Courts. The appeal is
limited by time and has to be filed in the High Court within 90 days from the date of award of
Claims Tribunal. ‘The High Court may entertain the appeal after the expiry of the said period of
ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring
the appeal in time.’ (Section-173). However, there is no time limit for filing motor vehicle
accidents claim. But an unusual delay will demand an explanation by the Tribunal. According to
Section 166 of the Motor Vehicles Act,1988 compensation can be claimed –By the person who

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has sustained injury; By the owner of the damaged property; By all or any legal representative of
the deceased who died in the accident; By duly authorised agent of the injured person or all or
any of the legal representatives of the deceased who died in the accident. And, the claim Petition
can be filed by the following–to the Claims Tribunal having jurisdiction over the area in which
the accident occurred or, to the Claims Tribunal within the local limits of whose jurisdiction the
claimant resides, or carries on business or, within the local limits of whose jurisdiction the
defendant resides.
Motor Accident Claims Tribunals [MACT Courts] deal with claims relating to loss of
life/property and injury cases resulting from Motor Accidents. The Claims are to be directly filed
in the concerned Tribunal. MACT Courts are presided over by Judicial Officers from Delhi
Higher Judicial Service. Now these Courts are under direct supervision of the Hon’ble High
Courts of various States.
To illustrate, in the case of death of a victim in a road accident, the Tribunal has to ascertain the
factum of the accident; accident having being caused due to rash and negligent driving; age,
occupation and income of the deceased; number of legal representatives and their age. If the
claimants have not produced copies of the record of the criminal case before the Claims
Tribunal, the Claims Tribunal is not absolved from the duty to ascertain the truth to do justice
and the Claims Tribunal can summon the investigating officer along with the police record. The
Delhi High Court has passed directions in this regard. The Delhi High Court has summarized the
procedure to be followed by the Claims Tribunal in motor accidents cases in Mayur Arora v.
Amit.
Most of the victims of the road accidents are from the lowest strata of the society and sole bread
winners leaving behind large family. There is illiteracy in the country and minor children are
involved. The legal representatives of the deceased have no knowledge of investment and saving.
There is a danger of the money being wasted or even the victims being cheated. In order to
protect the award amount from being wasted the Claims Tribunal shall examine the claimants to
ascertain their financial condition to pass order with regard to the shares and mode of
disbursement and the period and amount to be kept in the fixed deposit. Some portion of the
award amount be immediately released to the claimants and the remaining amount be kept in the
fixed deposit in such a manner that the claimants get the same in a phased manner. The original
fixed deposit receipt should be retained by the Bank in safe custody and the monthly interest be

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credited automatically in the savings bank account of the claimant. The maturity amount of the
fixed deposit be credited automatically in the savings bank account. No cheque book to be issued
to the claimants and no loan, advance or withdrawal be allowed on the fixed deposit without the
permission of the Claims Tribunal.

The Delhi High Court has prepared a checklist for use of the Claims Tribunals in the case of Mayur Arora
Vs. Amit.

Tribunal Has Power Of Civil Court For Purpose Of Taking Evidence On Oath

As per the provisions of section 169 of MV act , the claims tribunal can subject to any rules that
may be made in this behalf , follow such summary procedure as it thinks fit. The claims tribunal
can subject to any rules that may be made in this behalf , follow such summary procedure as it
thinks fit. claims tribunal has the power of CPC for the purpose of taking evidence on oath and
for enforcing the attendance of witnesses and of compelling the discovery and production of
documents and material objects . And also for such purpose as may be prescribed . The tribunal
as per section 169(2) is a civil court for purposes section 195 and chapter XXVI of Crpc. oriental
insurance company ltd. v. walayati ram and others.

Power To Admit Documents Without Proof

The rule that a document should be properly proved before it can be relied upon is not always a
technical rule of the Evidence act, but is often a fundamental rule of justice, which cannot be
ignored by any judicial tribunal Smt. Amarjit kaur v. M/s Vanguard Ins. co. Ltd.

Power To Entertain Application For Restoration

As the SC remedy of restoration of a petition dismissed in default is available under CPC . So the
tribunal on the analogy of those provisions can entertain an application for restoration south
Indian insurance co ltd. v. M.A.C tribunal .

Power To Set Aside Ex-Parte Order

Even in the absence of provision in procedural laws, power inheres in every tribunal , of a
judicial or quasi-judicial character, to adopt modalities necessary to achieve requirements of

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natural justice and fair play . procedure is grounded on principles of natural justice . statutory
tribunals have inherent to do justice to the parties before it. Stella v. motor accidents claim
tribunal .

Power To Award Cost

Even the awarding of costs under section 35 of the CPC is discretionary ;but that discretion must
be exercised in judicial principles. In the same manner the awarding of costs is in the discretion
of tribunal. The general rule is that a successful party is entitled to get costs incurred by him
unless he is guilty of misconduct or their is any other reason for disallowing the cost.

Award of interest where any claim is allowed Section 171

Where any Claims Tribunal allows a claim for compensation made under this Act, such Tribunal
may direct that in addition to the amount of compensation simple interest shall also be paid at
such rate and from such date not earlier than the date of making the claim as it may specify in
this behalf.

SUGGESTIONS

1. Ensuring that all accident victims get compensation

2. Payment of Compensation Without Delay
3. Securing compensation to all victims of accidents involving uninsured vehicles
4. To ensure effective functioning of Police Authorities in accident cases
CONCLUSION
Thus, one can draw a conclusion that accident is an event happening without concurrence of will
of the person by whose agency it was caused. The term ‘accident’ for the purpose of law relating
to compensation includes any injury not designed by the injured himself, and it is of consequence
that the injury was designed and intended by the person inflicting the same. For acceptance of an
application for compensation in Motor Accident Claims Tribunal, it is necessary to prove that the
injury or death has been occurred in an accident and also the fact that the said accident has arisen
out of the use of the motor vehicle.

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REFERENCES

1. Law of Insurance, Dr. S.R Mynene, 2nd Ed. ,2015 Asian Law House, Hyderabad.

2. http://webcache.googleusercontent.com/search?q=cache:Sbotp9l-
0JMJ:shodhganga.inflibnet.ac.in/bitstream/10603/28179/14/14_chapter%25206.pdf+&cd
=11&hl=en&ct=clnk&gl=in

Name of the Organisation :- Motor Accident Claims Tribunal, Mumbai.

Address:- 9, Hazarimal Somani Marg, Opp. Chatrapati Shivaji Terminus, Mumbai – 400001.
Name of Govt Dept:- Home Department, TRA – 5.
Jurisdiction:- Local Limits of Mumbai,
Duties:- Hearing and disposing of Claim Applications filed under Motor Vehicle Rules and Motor
Vehicle Act 1988.
Policy:- To do Justice to the litigants and expeditious disposal of claim applications.