Latest Amendments in MV ACT-TP Claims
Govt has proposed various amendments in the MV Act and to be placed before the Lok Shabha for the final approval. There is debate on the limit of quantum of third party claim passed by the Cabinet, presuming that TP claim is limited to Rs 10 lakhs instead of unlimited. But it is not so. The Govt has proposed amendment in various sections of the MV Act but section 140 to 145 under Chapter IX which deals with the unlimited liability amount are still in existence without any amendment.
As your are aware that the TP claims fall under three categories i.e. Hit & Run, No Fault Liability and with fault liability and Structured formula liability. Under hit and run the amount is increased from Rs 25000/- to Rs 2.00 lakhs and Rs 10 lakhs under “No Fault Liability”. Bt this Rs 10 ‘lakhs will depend upon the income of the deceased person. In case with fault liability/Structured Formula, the compensation amount can be demanded under section 140/141/163A through MACT.
The aggrieved party has option either to accept Rs 10 lakhs without going to the MACT or go to MACT for higher compensation under section 140 and 163A.
Though the premium for unlimited liability is prescribed by IRDA but the premium for Rs 10 lakhs compensation amount is to be announced by the Govt with the consultation of IRDA.