Govt Compensation in Motor Vehicle Accident Death? Nope! Fake News

The government has nothing to do with compensation in the case of a motor vehicle accident.

3 min read
Hindi Female
The government has nothing to do with compensation in the case of a motor vehicle accident.
Don’t fall for fake news, click here to check out The Quint’s WebQoof stories. 

This is the age of fake and false news. Not a day passes without coming across at least one fake/false news story. In the past few days, a message has been going around on WhatsApp, claiming that the government is obliged to give compensation worth ten times the average annual income of the last three years to that person’s family who dies in an accident.

The message also says this is based on a particular section of the Motor Vehicles Act 1988 (MV Act) and a Supreme Court judgement in a related case.

Both the claims are false.
The government has nothing to do with compensation in the case of a motor vehicle accident.

What is Section 166 of the MV Act?

Section 166 of the MV Act deals with how an application for compensation has to be made. It only talks about things like the persons eligible to file an application for compensation, how it should be filed etc.

The claim has to be filed with the relevant Motor Accident Claims Tribunal (MACT).

The government has nothing to do with compensation in the case of a motor vehicle accident.

The claim petition should include the following documents:

  • Copy of the FIR registered in the accident case.
  • Copy of the MLC/Post Mortem Report/Death Report, if applicable.
  • The documents of the identity of the victims and of the deceased in a death case.
  • Original bills of expenses incurred on the treatment, along with treatment record.
  • Documents of the educational qualifications of the deceased, if any.
  • Disability Certificate in an injury case.
  • The proof of income of the deceased/injured.
  • Documents about the age of the victim.
  • The cover note of the third party insurance policy, if any.

Who Pays the Compensation?

In case of a permanent disability or death in an accident involving a motor vehicle, the owner of the motor vehicle causing the accident is liable to pay compensation, as per section 140 of the MV Act.

The quantum of the compensation is decided by the MACT based on the multiplier table in the second schedule of the MV act. This explainer video explains the law for accident victims.


What Did the Supreme Court Say Then?

The case in the Supreme Court was in the form of an appeal challenging the quantum of compensation granted by the MACT in Madhya Pradesh. The SC, in its judgment, decided on the quantum of compensation and the multiplier to be applied as per the second schedule of the MV act. The judgment has no reference to the tax returns as claimed in the forwarded message.

The Claims Are Outright False

As explained above, the government has nothing to do with compensation to be granted in the case of a motor vehicle accident. Also, the quantum of compensation is not 10 times the average income, but based on the multiplier as given in the MV Act.

So the claims in the message are anything but true. This is one of those rare false news that actually mentions the source making it easy for anyone to fact check the claims. Do not believe any news story that comes your way irrespective of whether it is positive or negative. You should do some fact checking before hitting the forward button.

(This article has been published in arrangement with Factly.)

(Not convinced about a story you came across on social media? Want it verified? Send us the details at and we'll fact-check it for you. You can also read all our fact-checked stories here.)

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

Read Latest News and Breaking News at The Quint, browse for more from news and webqoof

Topics:  Webqoof 

Speaking truth to power requires allies like you.
Become a Member
3 months
12 months
12 months
Check Member Benefits
Read More