The bar association of the Motor Vehicle Claims Tribunals (MACT) has decided to oppose the proposed amendment to the Motor Vehicle Act, 1988, and has written to all members of parliaments (MPs) of the Lok Sabha in this regard.
“We have written to all Lok Sabha MPs and have also met several leaders to oppose the bill. The bill is against the interests of people; if it comes into effect, it will lead to injustice to victims and their families,” said NS Pawar, president, bar association, MACT. “In case the owner is poor and the compensation awarded is more than Rs10 lakh, it will be very difficult for him to pay, and the victim will suffer,” he added.
V S Chaughule, an advocate practicing in the motor vehicle tribunal said that reduction in liability of insurance companies will make it difficult for victims to get compensation, as it is very difficult to recover the money from the owner of vehicles.
“It is for this reason that the liability of insurance companies was made unlimited in 1994. Insurance companies have been paying the entire amount of compensation ever since,” Chaughule added.
NC Seth, vice president, bar association, MACT, pointed out that that there have been cases where the compensation awarded to the victim’s family has reached Rs. 1 crore, which was paid by the insurance company. “Recovering such a large amount from the owner may result in a long legal battle,” said Seth.