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PROJECT REPORT ON

APPLICATION FOR GRANT OF COMPENSATION

UNDER SECTION 166 OF MOTOR VEHICAL ACT,
1988.

DRAFTING, PLEADING AND CONVEYANCE

SUBMITTED TO: SUBMITTED BY:

DR. RABIA G KANWAR ADVOCATE SACHIN KUMAR
DRAFTING, PLEADING AND CONVEYANCE BALLB (HONS.)
UILS, PU SEC- B, 79/16

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ACKNOWLEDGMENT

Apart from the efforts of myself, the success of any project depends largely on the encouragement
and guidelines of many others. I take this opportunity to express my gratitude to the people who
have been instrumental in the successful completion of this project. I would like to show my
greatest appreciation to Dr. RABIA G KANWAR ADVOCATE. I can’t say thank you enough
for her tremendous support and help. I feel motivated and encouraged every time I attend her class.
Without her encouragement and guidance this project would not have materialized. The guidance
and support received from all the members who contributed and who are contributing to this
project, was vital for the success of the project. I am grateful for their constant support and help.

Moreover, I would like to acknowledge my family and friends for the guidance and support they
give. The effort is as much is theirs as is mine.

SACHIN KUMAR

BALLB (HONS.)

8TH SEM

79/16

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TABLE OF CONTENTS

INTRODUCTION………………………………………………………………………………4

COMPENSATORY PROVISIONS UNDER THE ACT………………………………………5

APPLICATION FOR GRANT OF COMPENSATION………………………………………6

DRAFT OF AN APPLICATION FOR COMPENSATION UNDER MVA…………………10

APPLICATION FOR COMPENSATION U/S 166 OF MVA, 1988…………………………13

REFERENCES…………………………………………………………………………………16

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INTRODUCTION

The Motor Vehicles Act, 1988 was enacted to consolidate and amend the law relating to accidents
arising from motor vehicles. When a law is enacted to consolidate and amend the law, the
Legislature not only takes into consideration the law as existed but also the law which was
prevailing prior thereto.1 The act looks into all aspects of road transport vehicles. The act replaced
the motor Vehicle Act of 1939. The Motor Vehicle Act, 1988 is a comprehensive enactment in
respect to various matters relating to traffic safety on the roads and minimization of road
accidents.2 The Motor Vehicles Act can be hailed as welfare legislation since it deals with
comprehensively about the road accidents involving motor vehicles and also enabling the victims
to claim compensation.3 In general the act provides licensing of drivers of motor vehicle, it deals
with registration of motor vehicles, and it deals with insurance of the motor vehicle, and the traffic
regulation, penalties. It also deals with control of motor vehicles through permits, special
provisions relating to state transport undertakings and etc. There are many sections under this act.

This paper will mainly deal with the drafting of application for compensation under this act. It will
talk about the different provisions in the Motor Vehicle Act dealing with the compensation to the
victims. The accidents are numerous and the victims are mainly the pedestrians and the cyclist.
The law requires giving compensation to these victims by the motor vehicle owners or the drivers.
In India the people are unaware of this right of theirs to get compensation from the owners or
drivers of the motor vehicle from which the accident took place. It is sad to see that the law does
not perform the way it is meant to be as the victims do not get compensated because they belong
to the weaker group of the society. So, through the act of Motor Vehicle, 1988 the victims get
compensated for the losses they suffer due to a motor vehicle.

1
Machindranath Kernath Kasar Vs. D.S. Mylarappa, A.I.R.2008 SC 198
2
Common Cause (A Registered Society) v. Union of India A.I.R 2008 S.C. 116.
3
Rajasthan State Road Transport Corporation v. Jhami Bai Kanhiyalal, AIR 1987 Raj 486.

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COMPENSATORY PROVISIONS UNDER THE ACT

Fixed compensation on the principle of no fault as provided under Section 140 of the Act

 Where death or permanent disablement of any person has resulted from an accident arising
out of the use of a motor vehicle or motor vehicles, the owner of the vehicle be liable to
pay compensation in respect of such death or disablement.
 The amount of compensation which shall be payable in respect of the death of any person
shall be fixed sum of Rs. 50,000/- and in respect of permanent disablement shall be a
fixed sum of Rs. 25,000/-.
 The amount of compensation which shall be payable in respect of the death of any person
shall be fixed sum of Rs. 50,000/- and in respect of permanent disablement shall be a
fixed sum of Rs. 25,000/-.
 The amount of compensation which shall be payable in respect of the death of any person
shall be fixed sum of Rs. 50,000/- and in respect of permanent disablement shall be a
fixed sum of Rs. 25,000/-.

After exercise of this option, Claimant cannot opt for compensation under section 163 A based on
structured formulas as provided

Payment of Compensation on structured formulae basis – Sec 163 A

The owner of the motor vehicle of the authorized insurer shall be liable to pay in the case of death
or permanent disablement due to accident arising out of the use of motor vehicle, compensation,
as indicated in the Second Schedule, to the legal heirs or the victim as the case may be.

However where the person is entitled to claim compensation under section 140 and section 163A,
he shall file the claim under either of the said section and not under both.

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Compensation in case of Hit & Run Motor Accidents where identity of vehicle is not
traceable

Where the identity of the vehicles is not traceable such cases are called hit and run cases, a fixed
compensation is provided to the victims from the Solatium Fund created by the Government. It
must therefore be shown that identity of the motor vehicle which caused the accident could not be
traced or ascertained in spite of reasonable efforts, meaning thereby that the accident must be
shown to have occurred on account of the victim being hit by some unidentified vehicle which hit
him and ran away.

APPLICATION FOR GRANT OF COMPENSATION

An application for compensation is made under section 166 of the Motor Vehicles Act and shall
be accompanied by a court fee of Rs. 10 in the form of court-fee stamps.

Particulars to the submitted in the Application

Following particulars are required to be provided when a Claimant files application seeking grant
of compensation

 Name and father’s name of the person injured/dead (husband’s name in the case of married
woman and widow).
 Name address of the employer of the insured/dead, if any.
 Full address of the person injured/dead.
 Age of the person injured/dead.
 Occupation of the person injure/dead.
 Monthly income of the person injured/dead.
 Whether the person in respect of whom compensation is claimed pay income tax (to be
supported by documentary evidence)
 Place, date and time of accident.
 Name and address of Police station in whose jurisdiction the accident took place or was
registered.

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Limitation Period

No application for compensation shall be entertained unless it is made within six months of the
occurrence of the accident.

The Supreme Court, in M/s. Purohit and Company vs. Khatoonbee (S.L.P NO 25760 of 20:-to
raise a claim for compensation before a Motor Accident Claims Tribunal, it should be done within
a reasonable time. It further held that the question of reasonability would be with respect to the
facts and circumstances of each case.

Determination of Compensation

A Constitutional Bench of the Apex Court in the case of National Insurance Company Limited
vs Pranay Sethi and Ors (S.L.P 255290 OF 2014) decided on October 31st, 2017 upheld the
Multiplier concept and deduction in personal and living expenses as laid down in the Sarla Verma
case. However the future aspects in awarding compensation under Section 166 of the Motor
Vehicles Act have been newly formulated by following the standardization principle.

The following principles have been laid down:-

 Factors to be determined
 The income of the deceased
 The age of the deceased
 The number of dependents

Determination of Multiplier

As regard the cases where the age of the victim happens to be up to 15 years, the Supreme Court
was of the considered opinion that in such cases irrespective of Section 163-A or Section 166 under
which the claim for compensation has been made, multiplier of 15 and the assessment as indicated
in the Second Schedule subject to correction as pointed out in Column (6) of the Table IN Sarla
Vermain (S.L.P 8648 of 2007), decided on 15thApril, 2009should be followed.

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In all other cases of death where the application has been made under Section 166, the multiplier
as in indicated in Column (4) of the Table in Sarla Verma which starts with an operative multiplier
of 18(for the age groups of 15-20 and 21 to 25 Years) reduced by one unit for every five years i.e
M-17 for 26 to 30 years, M-16 for 31 to 35 years, M-15 for 36 to 40 years, M-14 for 41 to 45 years,
M-13 for 46 to 50 years, then reduced by two units for every five years, that is M-11 for 51 to 55
years, M-9 for 56 to 60 years, M-7 for 61 to 65 years and M-5 for 66 to 70 years

Deduction of Personal Expenses

Where the deceased was married, the deduction towards personal and living expenses of the
deceased, should be one-third (1/3rd) where the number of dependent family members is 2 to 3,
one-fourth (1/4th) where the number of dependant family members is 4 to 6, and one-fifth (1/5th)
where the number of dependant family members exceed six.

Where the deceased is a bachelor and the claimants are the parents, the deduction follows a
different principle. In regard to bachelors, normally, 50% is deducted as personal and living
expenses, because it is assumed that a bachelor would tend to spend more on himself.

Thus even if the deceased is survived by parents and siblings, only the mother would be considered
to be a dependant, and 50% would be treated as the personal and living expenses of the bachelor
and 50% as the contribution to the family. However, where family of the bachelor is large and
dependant on the income of the deceased, as in a case where he has a widowed mother and large
number of younger non-earning sisters or brothers, his personal and living expenses may be
restricted to one-third and contribution to the family will be taken as two-third.

Insurer’s liability

Often, it is to be seen that the insurer of the vehicle disputes liability of the payment of the
insurance amount. In the event the offending vehicle is not insured then the insurance company is
not liable to pay. Whenever the owner of the vehicles violates the insurance policy’s terms and
conditions, then also the insurer is not liable to pay.

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Appeal

An appeal against the order of the Claims Tribunal lies to the High Court and may be filed
within ninety days from the date of the award. No appeal shall lie against an award if the amount
in dispute in the appeal is less than 10,000 rupees.

Who can file an Application for Compensation?

An application for compensation involving the death of, or bodily injury to, persons arising out
of the use of motor vehicles, can be made–

 by the person who has sustained the injury; or

 by the owner of the property; or
 where death has resulted from the accident, by all or any of the legal representatives of the
deceased; or
 by any agent duly authorized by the person injured or all or any of the legal representatives
of the deceased, as the case may be.

Where to File an Application for Compensation?

Every application shall be made, at the option of the claimant,

 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.

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DRAFT OF AN APPLICATION FOR COMPENSATION UNDER MVA

IN THE COURT OF MOTOR ACCIDENT CLAIMS TRIBUNAL AT _______________

MAC No: _______ of 2020

Name, father name age and other necessary particulars r/o_____________

---------------------Claimant

Versus

1. Name, father name age and other necessary particulars r/o____________

2. Insurance company of the car No._______________________________________________
-------------------------Respondents

Application under Section 166 of the Motor Vehicles Act, 1988 for the Grant of
Compensation

RespectfullyShoweth,

I,_________S/O /D/O/W/O resident of____________, do hereby apply for the grant of

compensation on account of injuries suffered by me in a motor accident caused due to rash and
negligent driving on the part of the respondent no. 1

Necessary particulars regarding the accident as well as vehicle involved in the accident etc. are
under: -
Name and father's name of the person: __________s/o/d/o__________________
Full address of the injured person: _________________________________

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Age of the injured: _________________________________

Occupation of the injured: _________________________________
Name and address of the employer of injured person:_________________________
Monthly income of injured person : ______________________Rs./per month

Does the person w.r.t whom compensation is claimed pays income tax _____YES/NO
Place, date and time of accident: __________________________________

Name and address of the police station : A FIR No. _______dated _____u/s _______

Registered in the Police Station__________

Nature of injuries sustained: ___________________________________

Name and address of the medical practitioner __________________________________

if any who attended the injured: __________________________________

Period of treatment and expenditure, if any: _________________________________

Registration and type of vehicle involved: Car No________ Owned by _________

Name and address of insurer of motor vehicle: Particular to be disclosed by the

Respondent No. 1

Name and address of the owner of the vehicles: ________________________________

Has any claim been lodged with the insurer: _______________________________

Name and address of the applicants: ________________________________

Relationship with the injured: The claimant himself is the injured.

Title to the property of the injured: Not Applicable.

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Amount of compensation claimed: _______________________________

Any other relevant information: _______________________________

In the light of the above detailed circumstances, it is respectfully prayed that the present application
may be please be accepted and the respondents may kindly be directed to pay a sum of
Rs.____________/- as compensation jointly and severally to the claimant on account of the
injuries suffered by him in the accident along with interest at the rate of 12% per annum from the
date of accident till actual payment of the same in the interest of the justice. Any other relief which
the Hon’ble Court may deem fit and proper in the circumstances of the case may also be granted
to the claimant in the interest of justice.

Dated: Claimant
_______ _______

(Through, Advocate)

Verification:

Verified that the contents of the paras’ no._______ to _____ are true to my knowledge and belief
and those of the paras’ ______ to ____ are based on the legal advice and are believed to be correct.
No part of it is false and nothing relevant has been concealed therein.

Place: Claimant

Dated:

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APPLICATION FOR COMPENSATION U/S 166 OF MVA, 1988

FACTS

On 05.04.2010 Sarat Phukan was returning home from Gohpur State Bank by riding his bike
bearing No.AS-12-B/8715 and when he reached Brahmajan Tiniali at NH-52, at that time the
offending vehicle bearing registration No.AR-06-4169 ( Maruti Car) was coming with high speed
in rash and negligent manner driving from the same direction and knocked at the Motor Cycle of
Late Sarat Phukan on his extreme back side at NH-52 near Brahmajan Tiniali at about 12 noon
and damaged the motorcycle and caused severe injury to the rider Sarat Phukan who thereafter
shifted to Gohpur PHC but the injured succumbed to injury on his way to hospital.

APPLICATION

IN THE COURT OF MOTOR ACCIDENT CLAIMS TRIBUNAL AT BISWANATH

CHARIALI, SONITPUR

MAC No: 277 of 2010

Sarat Phukan S/O Kiratan Phulkhan R/o of village – Balamguri, Dist. Sonitpur, Assam

---------------------Claimant

Versus

1. Mrs. Rita Hazarika S/O-Ramesh Hazarika age 29 R/O of Arasuti Pather, Sonitpur, Assam
2. Insurance company of the car No.AR-06-4169
-------------------------Respondents

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Application under Section 166 of the Motor Vehicles Act, 1988 for the Grant of
Compensation

RespectfullyShoweth,

1. I, Sarat Phukan resident of village – Balamguri, Dist. Sonitpur, Assam do hereby apply for the
grant of compensation on account of injuries caused to me in a motor accident caused due to rash
and negligent driving on the part of the respondent no. 1

Necessary particulars regarding the accident as well as vehicle involved in the accident etc. are
under: -
2. Name and father's name of the person: Sarat Phulkan s/o Kiratan Phulkhan
3. Full address of the injured person: Balamguri, Dist. Sonitpur, Assam
4. Age of the injured: 48 years
5. Occupation of the injured: EX-Serviceman
6. Name and address of the employer of injured person: CRPF INDIA
7. Monthly income of injured person: 26000 Rs./per month

8. Does the person w.r.t whom compensation is claimed pays income tax: YES
9. Place, date and time of accident: Brahmajan Tiniali at NH-52, 05.04.2010 and 12 PM
10. Name and address of the police station: A FIR No. 232456 dated 05.04.2010 u/s 279 IPC

Registered in the Police Station Gohpur

11. Nature of injuries sustained: Broken bones, cartilage tears and vertebrae injury

12. Name and address of the medical practitioner

if any who attended the injured: Dr. Ravi Sharma at Tiniali Hospital

13. Period of treatment and expenditure, if any: From 05.04.2010 to 27.07.2010

14. Registration and type of vehicle involved: Car No AR-06-4169 and Maruti Car

15. Name and address of insurer: Particular to be disclosed by the respondent 1

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16. Relationship with the injured: The claimant himself is the injured.

17. Title to the property of the injured: Not Applicable.

18. Amount of compensation claimed: Rs.5, 60,000/- (Five Lakh Sixty thousand)

19. Any other relevant information: Sarat Phukan is the only earning member
of his family and he has two school and college going children. It is further stated that injured Sarat
Phukan was an Exserviceman of C.R.P.F. and earned monthly pension and ration.

In the light of the above detailed circumstances, it is respectfully prayed that the present application
may be please be accepted and the respondents may kindly be directed to pay a sum of Rs. 5,
60,000/- as compensation jointly and severally to the claimant on account of the injuries suffered
by him in the accident along with interest at the rate of 12% per annum from the date of accident
till actual payment of the same in the interest of the justice. Any other relief which the Hon’ble
Court may deem fit and proper in the circumstances of the case may also be granted to the claimant
in the interest of justice.

Dated: Claimant
02.07.2010 Sarat Phukan
(Through, Advocate)

Verification:

Verified that the contents of the paras’ no. 1 to 12 are true to my knowledge and belief and those
of the paras’ 12 to 19 are based on the legal advice and are believed to be correct. No part of it is
false and nothing relevant has been concealed therein.

Place: Claimant

Biswanath Chariali, Sonitpur Sarat Phukan

Dated: 03.07.2010

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REFERENCES

 Nayan Joshi, Legal Writing & Drafting, Kamal Publishers; 2019 edition (2017).
 Chaturvedi, Pleadings Drafting and Conveyancing, Central Law Publication 2018.
 https://www.scconline.com/blog/post/tag/section-166-of-motor-vehicles-act-1988/
 http://morth.nic.in/sites/default/files/MV%20Act%201988-Chapter%2012.pdf

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