False Claim About Compensation for Accidental Deaths Goes Viral

A viral WhatsApp message claims that incase of an accidental death, the government is bound to give 10 times the compensation based on the deceased's average income of the past three years, if the deceased had filed their Income Tax returns.

This claim has been circulating social media since 2018.

(Archives of similar claims can be found here and here.)

What is the truth?: The viral claim about compensation is false.

• The Motor Vehicles Act, 1988 does not specify any such scheme for receiving compensation for the deceased's legal representative.

• The Supreme Court, in a 2009 case, had decided that the compensation given for accidental deaths would vary on different factors, which would, in turn, determine the multiplier for compensation.

How did we find out?: We went through the Motor Vehicles Act, 1988 to find if such a provision is given; however, we did not find any information about this.

• We found a Supreme Court judgment of Radhakrishna and another versus Gokul and others, which mentions a multiplier system that decides the compensation based on the age and income of the deceased, along with the number of dependents.

• Section 166 of the MV Act of 1988 mentions the provisions for the "application for compensation." It mentions the "application for compensation arising out of an accident of the nature specified in sub-section (1) of section 165 may be made."

• We didn't find any reference to the tax returns as claimed in the forwarded message.

Who pays the compensation?: Under Section 165 of the MV Act, 1988, the legal representative of the deceased can file an application to the Motor Accidents Claims Tribunal (MACT).

• The insurance company of the vehicle (if insured) and the driver of the vehicle responsible for causing the accident are both liable to pay compensation to the deceased, as mentioned in Section 140 of the act.

• The compensation is based on a multiplier system, which, in turn, is primarily based on the age of the deceased. It also counts the number of dependents of the deceased; hence, it has two categories, bachelor and married.

Amendments to the Act: The Act was amended in 2019 and 2022.

• The 2019 amendment brought changes in terms with grants of licenses and permits, standards for motor vehicles and penalties for violation of these provisions.

• The amendment increased the compensation for hit-and-run cases to a fixed base compensation of Rs 25,000.

• The latest amendment in 2022 brought omissions under Chapter 10 of the MV Act of 1988 that included provisions for interim compensation under Sections 140 to 144.

• In 2022, Chapter 11 of the Act has been replaced to include insurance provisions for motor vehicles with respect to third party risks. This amendment also included a "six-month period" since the occurrence of the accident to apply for compensation.

Conclusion: The viral claim concerning the compensation for the deceased in case of accidental death is false.

The government does not pay compensation in case of a motor vehicle accident and neither is the quantum of compensation 10 times the average income. The compensation is decided by the MACT, based on the multiplier as given in the MV act.

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