● 3rd party and MACT cases together or separately.

● MACT functions
● on the basis of DAR DetaiLed Accicient Report can MACT pass an order?

1- The relationship between third-party insurance and Motor Accident Claims Tribunal
(MACT) cases, specifically focusing on whether these can be dealt with together or separately.
This refers to insurance coverage where the insurance company compensates a third party
(victim) for injuries or damages caused by the insured person. In motor accident cases, third-
party insurance is mandatory, and the injured party can file a claim against the insurer of the
vehicle responsible for the accident.

Chapter XI of the Motor Vehicle acts talks about the Insurance of Motor vehicles against the
third-party risks

Section 149 and section 150

Section 165 claims Tribunal

The case of Gohar Mohammed v. Uttar Pradesh State Road Transport Corporation and Ors.
(2022) dealt with a motor vehicle accident where the deceased, a Managing Director, died after
his car was hit by a bus owned by the appellant. The Motor Accident Claims Tribunal (MACT)
awarded compensation of ₹31,90,000 to the legal representatives of the deceased. The bus was
found to be in violation of insurance policy terms, and the appellant was held liable. The
appellant’s argument about having a valid permit was rejected due to the inability to produce the
original permit and prove its validity in court.

The Supreme Court upheld the findings of both the MACT and the High Court, emphasizing that
the Motor Vehicles Amendment Act, 2019 and the relevant rules must be strictly followed in
such cases. Key highlights of the judgment include:

1. Liability of the Vehicle Owner: The court confirmed the owner’s liability for
compensation due to the violation of permit conditions. Even though the appellant argued
they had a valid permit, they failed to prove it adequately.
2. Insurance Policy Requirements: The judgment reiterated that motor vehicles must be
insured as per the Motor Vehicles Act. The absence of insurance or a valid permit shifts
liability to the vehicle owner in cases of accidents.
3. Procedure for Filing Claims: The court detailed the procedural requirements under the
Motor Vehicles Amendment Act, 2019, such as the submission of accident information
by police, involvement of insurance companies, and fast-tracking of compensation claims
to ensure timely settlement for victims.
4. Role of Authorities: The court emphasized that police officers and registering authorities
must act promptly in investigating accidents, filing reports, and aiding claimants in
 receiving compensation. Failure to comply with these duties could result in severe
consequences under the law.

THIRD-PARTY INSURANCE

Necessity of Insurance: The Court stressed that Section 146 of the Motor Vehicles Act requires
all motor vehicles to be insured against third-party risks. This ensures that in case of accidents
involving death or injury to third parties, there is financial protection available through the
insurance policy. Third-party insurance is mandatory for all vehicles. This ensures that
compensation is available for third-party victims (such as pedestrians or passengers in other
vehicles) who suffer injury, death, or property damage due to a road accident involving the
insured vehicle.
Liability for Lack of Insurance: If a vehicle is not insured as required, the owner becomes
directly liable for compensating third parties affected by accidents involving the vehicle. This
was a crucial issue in this case, as the bus owned by the appellant was found to be operating in
violation of the insurance policy’s terms and conditions.
Enforcement of Insurance Requirements: The Court affirmed that the insurance company is
liable to pay compensation to third parties in accidents as long as the vehicle is properly insured
and the policy conditions are met. However, if there is any breach of the insurance policy, such
as a violation of the terms of the permit, as in this case, the insurance company may recover the
compensation from the vehicle owner.
Role of Insurance Companies: The judgment also highlighted that insurance companies are
required to appoint officers to settle claims quickly and efficiently under the Motor Vehicles
Amendment Act, ensuring that third-party compensation is provided promptly after an accident.
MACT’s Role in Adjudicating Third-Party Claims: MACT is responsible for handling claims
related to motor vehicle accidents, including those arising from third-party insurance policies. A
victim or their legal representatives can approach MACT directly to seek compensation for
injuries, death, or damage to property resulting from an accident involving a motor vehicle. In
such cases, the insurance company is typically brought in as a respondent, since it is liable to
compensate the third party under the terms of the insurance policy.
Dealing with Claims Together or Separately: The Court made it clear that the MACT can
handle both the determination of liability and the insurance company’s obligation to pay
compensation within the same proceeding. This means that third-party insurance claims and the
assessment of the vehicle owner’s liability can be dealt with together in a single case before the
MACT.
Liability of Insurance Companies: The insurance company is primarily responsible for paying
compensation to third-party victims if the vehicle involved in the accident was insured and
operating in compliance with the terms of the insurance policy.
Recovery of Compensation from the Vehicle Owner: If the vehicle owner violated the terms
of the insurance policy (e.g., driving without a valid permit or insurance coverage), the MACT
may still direct the insurance company to compensate the victim, but the insurance company can
recover the compensation amount from the vehicle owner later.

2- MACT Functioning Based on DAR (Detailed Accident Report):

DAR- A Detailed Accident Report is prepared by the police and contains crucial information
about the accident, including details of the vehicles involved, insurance details, the injured
persons, witnesses, and more.

MACT Passing Orders Based on DAR: Yes, MACT can pass interim or final orders based on
the DAR.

● After the police submit the DAR, MACT can use it as evidence to determine the liability
of the parties involved, assess the compensation amount, and pass an order for the
compensation to be paid by the responsible party or their insurance company.
● The DAR plays a vital role in streamlining the compensation process, as it provides
verified details for the tribunal to consider in passing orders.

Actionable Steps:

● Look into how third-party claims are processed under MACT cases and whether there's
any distinction or separate handling involved.
● Explore the role of the Detailed Accident Report (DAR) in MACT proceedings and
how tribunals rely on it to pass orders.