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Home / Latest News / SC gives a setback to the ‘Uninsured Vehicle Owners’ to pay compensation to Accident Victims suffered

SC gives a setback to the ‘Uninsured Vehicle Owners’ to pay compensation to Accident Victims suffered

September 14, 2018:

On Thursday, Supreme Court directed all States to formulate rules to allow selling of Uninsured Vehicles involved in accidents Supreme Court gives a setback to the ‘Uninsured Vehicle Owners’ to pay compensation to the Victims.

Pevailing rules do not allow selling of Uninsured Vehicles thus making it difficult to pay compensation for Victims.

Unisured Vehicle
Unisured Vehicle

Apex Court has firmly directed that the rules should be framed within a period of 12 Weeks by all the States in accordance with those currently in force in Delhi.

Supreme Court Bench comprising of CJI Dipak Misra and Justice Chandrachud stated that,”If the Current Rules running in Delhi are enforced across the Country, then it would make driving of Uninsured Vehicle difficult as owners will run the risk of Seizure of Vehicle and being sold to pay the compensation for the Victim in case of accident”.

Seven major States (Jammu and Kashmir, Chattisgarh, Bihar, Punjab, Jharkhand, Puducherry and Lakshdeep) have initiated process of incorporating such rules as been informed to the Supreme Court.

Delhi submitted that it already has such rules in place. Haryana clarified that it has a Similar Rule, while Madhya Pradesh raised certain objections to the rules for compensation.

SC Bench further added that Magistrate having Jurisdiction over the area in which accidents takes place will not release the Uninsured Vehicle to the owner. They will auction it and deposit the money with the Motor Vehicle Claims Tribunal (MACT) within 15 days of such happenings.

Amount so realized from the sale of Vehicle shall be released by MACT to the ‘Victim’ while awarding the compensation.

Apex Court Bench stated that all States should comply with the earlier direction and incorporate Rules similar to the ones currently forced in Delhi, within a period of 12 Weeks.

Section 6 of the ‘Delhi Motor Accidents Claim Tribunal Rules’, 2008 deals with the Prohibition against release of Motor Vehicle involved in accident.

It states that,”No Court shall release an Uninsured Vehicle involved in an accident resulting in death or bodily injury or  any damage to property unless and until the Registered Owner furnishes sufficient security to the satisfaction of the Court to pay compensation that may be awarded in a Claim Case forming out of any such accident”.

Section 6 (2) says that when the Motor Vehicle is not insured against third party risks, it shall be sold off in Public Auction by the Magistrate having jurisdiction over the area where accident occurred on expiry of 3 months of the Vehicle being taken in possession by the Police Officer, and proceeds shall be deposited with the Claims Tribunal, within 15 days for the purpose of the Compensation to be paid in a ‘Claim Case’ arising out of such accident.

Source: PTI

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