Third-party accident claims in India: MACT, no-fault compensation and hit-and-run

Third-party accident compensation in India is decided by the Motor Accident Claims Tribunal (MACT), not by your insurer's claims team. If your insured vehicle injures or kills someone, the victim or family files a claim before the Tribunal, your insurer defends it, and the insurer pays the award under the compulsory TP cover. If you are the victim, you claim against the other vehicle's insurer through the Tribunal. Since the 2019 amendments to the Motor Vehicles Act, 1988, there is also fixed no-fault compensation under section 164 (₹5 lakh for death, ₹2.5 lakh for grievous hurt), a hit-and-run scheme for untraced vehicles (₹2 lakh for death, ₹50,000 for grievous hurt), and since May 2025 a national cashless treatment scheme paying up to ₹1.5 lakh per victim for up to seven days at designated hospitals.

This guide is part of claim rejection reasons.

If your vehicle injured someone

1. Help the injured and call 112. The law protects people who help accident victims in good faith (the "Good Samaritan" provisions in section 134A).
2. Report to the police. The driver must inform the nearest police station as soon as possible; leaving without reporting is an offence.
3. Inform your insurer immediately with the FIR details. Your insurer's TP claims team will defend the case.
4. Give your insurer the policy, RC, driving licence of the driver, and permit/fitness details where relevant.
5. Attend the Tribunal when summoned. The award is paid by the insurer within the TP cover.

Your NCB may be affected by a TP claim under your policy; practice differs, so ask your insurer.

When the insurer can recover from you

The insurer must pay the victim, but it can be given a right to recover from the owner if there was a breach of policy conditions, such as:

• The driver had no valid licence
• The driver was under the influence of alcohol or drugs
• The vehicle was used for hire or reward under a private policy
• The vehicle was used outside its permit terms (commercial vehicles)

In such cases the award may be very large, and you could personally owe it. Keep licences valid and never lend your car to someone who is not fit to drive.

If you were hit by another vehicle

Since the 2019 amendments, a claim petition under section 166 is generally to be filed within six months of the accident. Courts have dealt with how strictly this applies, so file promptly and take advice if you are close to or past the limit.

The police also have duties to send an accident information report to the Tribunal, and the Tribunal can treat that report as a claim application.

Worked example: no-fault compensation vs full claim

Illustrative. A motorcyclist suffers a fracture (grievous hurt) after being hit by a car.

• Under section 164, the victim can claim ₹2.5 lakh without proving the car driver's negligence. If the victim later receives a larger award under section 166, the section 164 amount is adjusted against it.
• Under section 166, the Tribunal assesses medical expenses, loss of earnings during recovery, pain and suffering and future loss, based on evidence. Suppose medical bills of ₹1,80,000 and three months' lost income at ₹30,000 a month (₹90,000), plus non-pecuniary heads; the award might be several lakhs.
• The cashless treatment scheme covers up to ₹1.5 lakh of initial treatment at designated hospitals within seven days, which reduces the immediate medical outlay.

The amounts above are illustrative; actual awards depend on evidence and precedent.

The cashless treatment scheme (from 5 May 2025)

The Cashless Treatment of Road Accident Victims Scheme, 2025, notified by the Ministry of Road Transport and Highways, provides:

• Up to ₹1.5 lakh per victim per accident
• For up to seven days from the date of the accident
• At designated hospitals; non-designated hospitals provide stabilisation only
• For any victim of a road accident involving a motor vehicle, regardless of fault or insurance
• Administered with the National Health Authority and state agencies

Check the scheme's current terms and the list of designated hospitals in your state through official channels.

Property damage to third parties

Damage to another person's vehicle or property is covered under your TP section up to the policy limit, commonly ₹7.5 lakh for private cars. Small property damage cases are often settled directly with the other party's insurer; insist on going through your insurer rather than paying privately, unless you are sure the amount is small and no injury is involved.

Related guides

• The complaint route to the Ombudsman
• The cashless and reimbursement claim process

Frequently asked questions

Does my own insurer pay me if I am injured by another vehicle?

Your CPA cover pays a lump sum for death or permanent disability as owner-driver. Medical costs and other losses are claimed from the other vehicle's insurer through MACT, or from your health insurance.

Can I settle a TP claim privately?

You can, but you may lose the protection of your policy and your insurer's defence. If someone is injured, always involve the police and your insurer.

Is a third-party claim limited to ₹7.5 lakh?

No. Death and injury liability is unlimited. The ₹7.5 lakh figure commonly applies only to property damage.

Do I need a lawyer for MACT?

Not mandatory, but most claimants use an advocate because evidence of income and medical records determine the award. Agree the fee in writing.

Sources

• Ministry of Road Transport and Highways — Motor Vehicles Act, hit-and-run scheme and cashless treatment scheme
• National Health Authority — implementing agency for the cashless treatment scheme
• e-Courts Services — case status for MACT matters
• IRDAI — insurer obligations on TP claims