A person injured in a road accident in India, or the legal representatives of someone killed, can claim compensation from the vehicle owner and insurer before the Motor Accident Claims Tribunal under section 166 of the Motor Vehicles Act, 1988. The claim can be filed where the accident occurred, where the claimant lives or where the defendant resides, through a power of attorney holder. NRIs and foreign nationals have the same right, and income earned abroad is taken into account.
- Forum
- Motor Accident Claims Tribunal
- Filing period
- File within 6 months of accident
- No-fault amount
- Rs 5 lakh death, Rs 2.5 lakh grievous hurt
- Paid by
- Third-party insurer
Who can claim and against whom
A claim may be brought by the injured person, by the owner of damaged property, or, in a fatal case, by any or all legal representatives of the deceased, which courts interpret broadly to include dependants beyond the immediate heirs. It is filed against the driver, the owner and the insurer of the offending vehicle. Third-party insurance is compulsory for every vehicle on Indian roads, and the insurer's liability to third parties for death and injury is unlimited, so the practical question is proof, not solvency.
Nationality and residence are irrelevant. Tourists, visiting NRIs and OCI cardholders are entitled on the same footing as residents, and claims are regularly filed by families abroad for a relative who died while visiting India.
Time limits and the first steps
The 2019 amendment to the Act, brought into force in April 2022, reintroduced a limitation period: section 166(3) says no application shall be entertained unless made within six months of the accident. The provision is under challenge and tribunals have differed on condoning delay, so the only safe course is to file within six months.
In the first days: ensure the accident is reported and an FIR registered; note the vehicle number and insurer; obtain the medico-legal or post-mortem report; and keep all hospital records and bills. Police are now required to send a detailed accident report to the Tribunal, which can itself be treated as a claim. If the deceased was the breadwinner abroad, start collecting employment and tax documents immediately.
How compensation is calculated
For death, the Supreme Court's decisions in Sarla Verma v. Delhi Transport Corporation (2009) and National Insurance Co. v. Pranay Sethi (2017) prescribe the method. Annual income is established; an addition is made for future prospects, between ten and fifty per cent depending on age and nature of employment; a fraction is deducted for the deceased's personal expenses according to the number of dependants; and the result is multiplied by a factor from eighteen down to five based on age. Fixed sums are added for loss of consortium, loss of estate and funeral expenses, revised upward periodically.
For injury, heads include medical expenses past and future, loss of earnings, loss of earning capacity assessed from the functional disability, attendant charges, pain and suffering, and loss of amenities. Interest runs from the date of the claim petition.
Proving income earned abroad
Courts accept foreign salary as the basis of the award, converted at the exchange rate on the date of filing in most decisions, while making the deduction for personal and living expenses with the higher cost of living abroad in mind. The evidence that carries weight is the employment contract, pay slips, tax returns or assessments from the country of residence, bank statements showing salary credits, and a letter from the employer, each apostilled or attested so they can be produced in India. Where the victim was self-employed, business accounts and tax filings are used. Without such proof tribunals fall back on notional income, which can reduce an award to a fraction of its proper value.
No-fault, hit-and-run and settlement
Section 164 offers a fixed sum of five lakh rupees for death and two and a half lakh for grievous hurt without proof of fault, as an alternative to a full claim. Where the vehicle cannot be identified, the hit-and-run scheme of 2022 pays two lakh rupees for death and fifty thousand for grievous hurt through the district authorities. Cashless treatment for accident victims in the first days is being rolled out nationally.
Many claims settle with the insurer through conciliation or Lok Adalat. A settlement offer should be compared against a proper calculation before it is accepted. Awards to minors and widows are usually protected by partial fixed deposits, and the share of a claimant abroad is paid to their NRO account, from which it may be remitted. Rejected personal accident or life cover is a separate matter: see insurance claims.
Mistakes that cost NRIs time and money
- Missing the six-month period.
- No authenticated proof of overseas income.
- Accepting the insurer's first offer.
- Not obtaining the post-mortem and police papers promptly.
A typical situation
Foreign salary changed the award
A thirty-five-year-old engineer working abroad dies in a road accident while visiting India. The insurer offers a sum based on notional income. The family produces his attested employment contract, pay slips and tax records. Applying the multiplier method to that income, with future prospects, the Tribunal awards several times the original offer, with interest.
Illustration only, based on patterns we commonly see. It is not a real client's case and outcomes depend on the facts.
If you live in...
The Indian law is the same wherever you live. These are the points that differ by where you are.
USA and Canada
Tax returns and W-2 or T4 slips, apostilled, are the most persuasive income evidence.
UK and Europe
P60 and employer letters, apostilled, serve the same purpose.
UAE and the Gulf
Salary certificates and labour contracts must be attested by the Indian mission.
Country pages: UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain
Australia, New Zealand and Asia
Payment summaries and tax assessments from Australia, New Zealand or Singapore should be apostilled.
Country pages: Australia, New Zealand, Singapore, Malaysia
Detailed country pages for this service: Motor Accident Claims in India: Saudi Arabia NRIs
Documents you will need
Collect as early as possible:
- FIR and police accident report
- Post-mortem or medico-legal report
- Death certificate, or disability certificate
- Hospital records and bills
- Vehicle registration and insurance details
- Income proof: contract, pay slips, tax returns, attested
- Proof of age and of dependants' relationship
- Passports and power of attorney from claimants abroad
How we handle it for you
Record collection
We obtain police papers, vehicle and insurance particulars and medical records.
Valuation
Compensation is computed under each head with supporting evidence, including foreign income.
Filing
The claim is filed in the most convenient Tribunal within the six-month period.
Evidence and negotiation
Witnesses are examined, by video link where abroad; settlement is explored on fair terms.
Award and payment
We secure release of the amount and its transfer to the claimants.
Frequently asked questions
Can an NRI family claim compensation for a road accident death in India?
Yes. Legal representatives living abroad can file before the Motor Accident Claims Tribunal through a power of attorney holder, and their residence or nationality does not affect the claim.
Is foreign income considered in calculating compensation?
Yes. Tribunals and the Supreme Court have based awards on income earned abroad, converted to rupees, with a suitable deduction for living expenses, provided it is proved by authenticated documents.
What is the time limit for a motor accident claim in India?
The amended section 166(3) requires the application to be made within six months of the accident. Because the provision is contested, claims should be filed within that period without relying on condonation.
Where can the claim be filed?
At the claimant's option, in the Tribunal for the area where the accident occurred, where the claimant resides or carries on business, or where the defendant resides.
What if the vehicle that caused the accident is unknown?
Compensation is available under the hit-and-run scheme: two lakh rupees for death and fifty thousand for grievous hurt, claimed through the district authorities.
Do claimants need to come to India?
Usually not. An attorney holder files and attends, and evidence of claimants abroad is recorded by video conference or on commission.
Can a claim be made if the deceased was partly at fault?
Yes. Compensation is reduced in proportion to contributory negligence, not refused.
Is the driver's own family covered?
The owner-driver is covered only under personal accident cover. Passengers in a private car are covered where the policy is a comprehensive one that extends to occupants.
