What is the Motor Vehicle Act of 1988 ?

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What is the Motor Vehicle Act of 1988 ? Blog Image


The Delhi High Court has given the Central government a six months timeline to enforce the provisions of the Motor Vehicles Act that provide for a grant of compensation to road accident victims, even if the errant vehicle is uninsured, as well as in hit-and-run cases.

About the Motor Vehicle Act of 1988:

  • It is a comprehensive Act that has replaced the Motor Vehicle Act, 1939.
  • It was implemented on 1st July 1989.
  • The act  covers all aspects of road transport vehicles, such as registration, licensing, regulation, claims, compensation in case of accident etc.
  • The act regulates all cases related to Motor Accidents all over India.
  • An person injured in a motor accident or legal representatives of a person deceased in a motor accident can apply for compensation under Motor Vehicles Act, 1988.
  • The act was amended in 2019 and 2022. Both these amendments deal with third-party insurance and claims management, including filing claims with the Motor Accident Claim Tribunal.

Motor Accident Claim Tribunal:

  • It was created by the Motor Vehicles Act, 1988.
  • It has been constituted to provide speedier remedy to the victims of accidents by motor vehicles.
  • There is no time limit for filing motor vehicle accidents claims.
  • A State Government can constitute one or more Motor Accidents Claims Tribunals.
  • Civil Courts do not have jurisdiction in the matters which concerns the Motor Accidents Claims Tribunal.
  • The appeals against the Claims Tribunals will lie before the High Courts.
  • The appeal is limited by time and has to be filed in the High Court within 90 days from the date of award of the Claims Tribunal.


Q1) What is the maximum compensation under Motor Vehicle Act of 1988?

The government in 2018 has amended the compensation amount payable for third-party fatal accidents and injury claims. The amount of compensation payable in case of death will be Rs five lakh. The minimum compensation in case of permanent disability of any kind shall not be less than Rs 50,000.

Source: Enforce law on compensation to accident victims: Delhi High Court