All You Need To Know About Section 166 Of The Motor Vehicle Act

The Indian Motor Vehicle Act is a constitutional arrangement that states in detail the legislative provisions regarding the registration of motor vehicles, providing them with permits, granting special provisions relating to state transport undertakings, outlining traffic regulation, and defining liability, offences and penalties, among other things. More importantly, it acts as a redressal mechanism in cases of vehicular accidents.

Accidents are unfortunate and sometimes, they can happen due to no fault of yours. The Motor Vehicle Act that came into force in 1988 protects the interests of those who are not at fault by ensuring adequate compensation, justice, and punishment for the offender. This important Act is aimed at ultimately preventing road accidents and serving as a legislative mechanism during cases of accidents.

History of the Motor Vehicles Act

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The purpose of such Acts is generally to act as a preventative and remedial measure against vehicle accidents. The first Motor Vehicle Act was introduced in the country back in 1914 under British India. It was replaced by the Motor Vehicle Act in 1939, which then made way for the Motor Vehicle Act of 1988. Section 166 has been part of the Act ever since. 

What is Section 166 of the Motor Vehicle Act?

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Section 166 of the Motor Vehicle Act is aimed at specifying the provisions of who can apply for compensation in the Motor Accidents Claims Tribunal (MACT) in case they are involved in an accident. An application can be made:
1. By the person who has sustained an injury.

2. By the owner of the property, who is the person on whose name the vehicle is registered. And in the case of a minor, the guardian of that person.

3. By all or any legal representative of the deceased in case of a death.

4. By any agent duly authorized by the person injured or all or any of the legal representatives of the deceased.

How can a person claim this compensation?

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Under Section 166 of the Motor Vehicle Act, any person who has been involved in an accident can make a claim for compensation at a tribunal located in:
1. The area where the vehicle owner resides.

2. The area where the claimant resides.

3. The area where the accident took place.

When can a person claim the compensation?

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Officially, there is no stipulated time limit for claiming compensation after an accident. However, one should ensure that it is done at the earliest to not arouse the suspicion of the tribunal. That's because the tribunal offers compensation to the concerned party only in the following cases:

1. When an accident results in an injury to the body or the head.

2. When an accident has caused loss or damage to the property.

3. When the accident has strictly been caused by motor vehicles.

In conclusion, safety while driving any vehicle should be your top priority but knowing the provisions of this Act allows you to gain compensation for accidents that occur due to no fault of yours.