Motor Insurance Tribunal Claims Process in India

What Is The Motor Accident Claims Tribunal (MACT)?

Established under Section 165 of the Motor Vehicles Act, 1988, as amended from time to time, the Motor Accident Claims Tribunal (MACT) is a district-level judicial authority responsible for handling compensation claims arising from motor vehicle accidents that result in injury, death or property damage.

Unlike ordinary courts, MACT is specifically authorised to:

• Determine liability
• Calculate damages
• Order insurers or other parties to pay compensation

Recently, in a MACT ruling in Thane (August 2025), the tribunal awarded ₹49.4 lakh to the parents of a 25-year-old software engineer who died in a road accident. Although the victim lost control of his motorcycle, the truck driver was found 75% liable due to careless driving. An initial compensation of ₹65.9 lakh was reduced by 25% for contributory negligence, resulting in a final award paid with 9% annual interest.

 

Step-by-Step Motor Insurance Claims Process

After an accident, the process for filing a claim with the Motor Accident Claims Tribunal (MACT) is as follows:

1. Report the accident

The incident must be reported to the police as the very first step. A copy of the FIR so filed with the police is a mandatory document one must submit along with the claim form and other documents.

2. Collect your documents

In the unfortunate event of being injured in the accident, the policyholder must take care to keep all the related medical documents, including bills, prescriptions and test results, in order. These documents are considered as essential evidence for the claim being filed.

3. Submit your claim with the MACT

You can file a claim under Section 166 of the Motor Vehicles Act within a period of 6 months from the date of accident. The claim must be submitted to the MACT that has jurisdiction over the area where the accident happened, your residence or where the insurer is situated.

To ensure a stress-free and smooth process, you can take care and ensure you have these papers/documents in hand:

• Copy of the FIR and other criminal papers
• A driver's license of accused driver
• A vehicle registration certificate (RC), permit, fitness all vehicular documents
• Vehicle Insurance Policy of the accused
• Bills for medical care, including pmr in case of death
• Proof of income

4. Attend the Tribunal Hearings

After you lodge your claim, the MACT will send notices to all involved parties, including the insurance provider. During the proceedings, both sides can present evidence, summon witnesses and question each other.

The Tribunal will analyse things like

• Fault and negligence
• Extent of injuries or death
• Impact on your ability to perform your job
• Supporting evidence

5. Receive the compensation

If your claim is approved, the MACT will direct the insurance company or liable party to pay you the money you are entitled to. This usually includes:

• Medical expenses
• Funeral costs (when someone dies)
• Loss of income or earning capacity
• Mental agony and suffering
• Future treatment costs

The insurance company has to follow through with the order within 30 days.

 

Who Can File a Claim With MACT?

As per Section 166 of the Motor Vehicles Act, the following individuals can file a claim:

• The injured person

• Owner of the damaged property
• Legal representatives of a deceased victim

• Authorised agent or legal guardian (in case of minors or incapacitated persons)

Even pedestrians excluding unauthorized passengers or passengers not associated with the vehicle can file a claim if they are victims.

 

Challenging A MACT Decision: The Appeal Process

In the event that you disagree with the tribunal's ruling, you may contest or appeal it by following the proper legal processes specified in Section 173 of the Motor Vehicles Act. You can request a review of the tribunal's initial ruling through this procedure, which may result in a different conclusion or settlement.

Here are the steps you can take:

• To challenge the decision, file an appeal with the High Court within 90 days of the award date.
• The appeal is allowed only if the compensation amount exceeds ₹1,00,000( as per new amendment)
• You must show legal grounds, like errors in judgment or misapplication of law.

 

Distinction: MACT Claim vs. Direct Insurance Claim (Own Damage)

Understanding the difference between an MACT claim and a direct insurance claim is vital.

Aspect	MACT Claim	Own Damage Insurance Claim
Applicable To	Third-party injury or death	Damage to your own vehicle
Filed With	Motor Accident Claims Tribunal	Your insurance company
Legal Involvement	Mandatory tribunal process	Policy-based settlement
Compensation Basis	Negligence and injury evidence	As per policy terms
Documentation	FIR, evidence, medical proof	Photos, bills, policy document

While MACT manages Third-party claims under a statutory  liability framework, claims for own damage are processed through a private contractual arrangement.

 

Solatium Fund: Compensation When Vehicle Is Uninsured

In hit-and-run cases or if the car is uninsured, victims can still get paid. This can be accomplished through the government's Solatium Fund, as outlined in Section 161 of the Motor Vehicles Act.

The fund provides:

• ₹2 lakh for death
• ₹50,000 for grievous injuries

These are fixed sums intended as relief for vulnerable victims. The claim is submitted via the Claims Enquiry Officer appointed in a new legal framework Golden Hour scheme.

The "Golden Hour" Cashless Treatment Scheme (MCV Scheme), officially Cashless Treatment Scheme 2025, he scheme is rolled out under Section 162 of the Motor Vehicles Act, 1988 Amendment 2019, is a pan-India initiative launched by the Indian government in May 2025 under the Motor Vehicles Act, 1988. It provides cashless treatment, up to a maximum of Rs 1.5 lakh, for road accident victims during the critical "golden hour"—the first hour after an accident where immediate medical care significantly improves survival chances. The scheme ensures timely medical help by providing cashless treatment at designated hospitals across the country, overriding financial or procedural delays that often cost lives, thereby aiming to save a significant percentage of lives lost to road accidents.
 

Conclusion

Although the Motor Insurance tribunal claims process guarantees accident victims a legal route to seek fair compensation, you wouldn't have to go for such proceedings if you have Comprehensive Car Insurance coverage.

Shriram Car Insurance provides comprehensive coverage that goes beyond the essentials. With valuable add-ons such as Zero Depreciation Cover, Roadside Assistance and Personal Belongings Cover, we strive to help you manage practical risks associated with accidents. With quick claims processing, minimal paperwork and No Claim Bonus benefits, Shriram Car Insurance ensures policyholders receive effective support during emergencies and to prevent lengthy legal procedures.
 

FAQs

1. Can MACT award be challenged?

Yes. As per Section 173, appeals can be filed in the High Court within 90 days for awards over ₹10,000.

 

2. Is lawyer help mandatory?

Having a lawyer is not legally compulsory. However, it is generally accepted that legal representation improves the chances of a successful outcome.

 

3. What’s the deadline to file a MACT claim?

The Act previously specified six months. However, in modern practice, courts usually accept claims made after this period if there is well-founded reasoning.

 

4. Do I need to appear in person?

Yes, an in-person appearance is required, especially for evidentiary hearings and cross-examinations.

 

5. Is compensation under MACT taxable?

No. Any compensation received via MACT is not subject to income tax according to Indian law.