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DISHA D. SHAH (lawyer)     03 September 2016

The motor vehicles (amendment) bill, 2016

The Motor Vehicles (Amendment) Bill, 2016 going to pass in loksabha , that restricts libility to pay compensation to maximum  Rs.10 lakh in case of deceased and Rs. 5 lakh in case of injured towards third party claims by insurance companies.


Current poisition :-Insurance companies getting premium for risk of owner for  unlimited liability of third party .Iinsurance company have to pay  compensation according to age and income of deceased who  died due to accident ,who covers under third party claims to heirs of deceased.thats called unlimited liability towards third party . (first and second party are driver and owner of vehicle )

Insurance companies abusing poor law proceudres every time ,not settling cases via compromise as facilitates by court to settle cases even reducing claim amount more than 50 %.Secondly lawyers of insurance companies never give even presence to court that leads to too much delay in court cases . the requirment is to take actions agains their irresponsible behaviour against public . Gov. working totally opposit to public interest.
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Now Gov. going to pass bill of motor vehicle bill  where limiting third party claims compensation to Rs.10 lakh , which lead to huge profit to insurance company.Excess Of Rs.10 lakh  compensation burdon on owner of vehicle.

Example:-  a young man died in accident and covering  in defination of third party if earning about 3000 per month , his heirs will  get nearly 10 lakh excluding interest of 9%.
Now see if person earns  3000 their heirs gets 10 lakh as we know even carpenter and labours are getting minimum 500 per day that comes to Rs.15000/- per month .
so Result of this bill if mr. ambani dies ,His heirs will get only Rs. 10 lakh 
Hahahah what a joke !!

This bill is totally fevourable  for getting huge profit for insurance companies, awarness is required in public.



 7 Replies

Arvind Singh Chauhan (advocate)     04 September 2016

People will prefer to negotiate with chalaning authority than to paying huge fine. Also. Framer didn't keep in mind the social impact.

Suri.Sravan Kumar (senior)     04 September 2016

Thanks for dharing the information

1 Like

G.L.N. Prasad (Retired employee.)     04 September 2016

Views of entire stake holders has to be considered for a better understanding.  Unless the preamble for brining such enactment is properly studied it is difficult to come to a conclusion.  There should be a ceiling for any claim and that must be transparent and clear.  Now the victims's family, the insurance officer, the mediating agency are making exorbitant claims, more than the real eligibility.  There are compromises as the compensation is from a Govt. Agency (Insured).   Every Act may be having teething problems initially, and once it comes into force, there is a scope for amendements considering the representations and practical difficulties.  There is a need for enactment as this may caution against reckless and rash driving and a certain fear will be instilled in such drivers.   Now the owner may also contemplate to cover up additional funds, if he requires for more insurance cover.  (The maximum cover by company may be Rs.10 lakhs and the vehicle owner may pay extra premium if he wanted to cover extra rsk amount, just like health insurance)

MPS RAMANI (Scientist/Engineer)     04 September 2016

The insurer and the insured are the first two parties and anyone who has a claim on these two is the third party. It is not the owner and the driver the first two parties. If the liability to pay compensation is limited to Rs.10 lakhs, it is 10 lakhs only. Where is the question of excess liability coming on the owner?

1 Like

AFIFUL HAQUE MUFTI BARBHUIYA (legal practices)     04 September 2016

So far the new amendment of the MV Bill is concerned only the Insurance Companies will get the extra benefits as now a days they collects huge amount on 3rd pary insurance also as the Govt. has paved them the way to earn huge amount which is beyond the interest of the citizens of the county. We must be united to raise voice and send Memorandums and appeals to the Central Govt to abstain from this amendment in this way by imposing extra burden on the owner of the Motor car. So we must do for the same for the sake of justice to the mass people and the concerned law must be clear enough and Govt must take steps to aware the common masses the clear concept and easy rules of the law and there should be proper and real inquiry on each and every accident by the reputed and moral legal personnels appointed by the Govt. in order to reduce the illegal manner and readymade reports concocted tempted and doctored statements of any type of incident for the sake of real and practical judgement to issue orders to provide the legal benefits to the victims of the accident. Mere amendment of the act can not provide justice to the victims unless the concerned officers are moral and sincere.

1 Like

DISHA D. SHAH (lawyer)     11 September 2016

Originally posted by : Dr. MPS RAMANI Ph.D.[Tech]
The insurer and the insured are the first two parties and anyone who has a claim on these two is the third party. It is not the owner and the driver the first two parties. If the liability to pay compensation is limited to Rs.10 lakhs, it is 10 lakhs only. Where is the question of excess liability coming on the owner?

currently person earning Rs.3000 claim amount nearly Rs.10 lakh so entire burdon of excess will be on owner.   secondly they totally skipped away labourers and workers so their heirs will get nothing  For details please go to  link  

https://www.linkedin.com/pulse/review-motor-vehicle-amendmentbill-2016-dhirajbhai-shah?trk=prof-post

DISHA D. SHAH (lawyer)     11 September 2016

Respected Lawyers,

Advocate association of mumbai already opposed this bill 

transport assocation also started opposing this bill 

Awarness required in public So i urge to lawyers to spread information about this bill .

Thank You

Adv.D.D.Shah


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