Understanding insurance claim settlement after an accident

A year later, we received another registered post asking us to appear in court with or without a lawyer for settlement.

BHPian RMN recently shared this with other enthusiasts.

Hello everyone,

Last year, my wife in her car was involved in a road accident with a lady on her scooter. The accident itself was pretty minor but then the lady being aged, while she made contact with the car lost control while accelerating, spun and fell down.

My wife took the lady to the hospital and we paid her causality bills and waited for her family to arrive. By then, the results of the scan came and it showed that the lady had a fracture. Since she doesn't have any medical insurance, she asked us to pay for it. I said that wouldn't be possible and since we had comprehensive insurance, asked her to go that route. We also paid her around 8,000 Rs since they did not have any cash to pay for the following days in the hospital.

They filed a case and the cops collected an FIR and in such cases, a suspension of the license is mandatory which my wife served. The FIR was written mostly in favor of the other lady and when I raised this concern, the cops said that's okay since the insurance will take care of it and this would help her.

After a few days, we got a registered post for her settlement claim and the respondents were listed as my wife and her insurance company. From what we were told, we didn't have to respond to it since the insurance will do. I'm not sure if the insurance did or not and they have also never contacted us. A year later, we just received another registered post asking us to appear in the Nation Law Court with or without a lawyer for settlement.

At this point, I'm not sure what's going on and just wanted to check with everyone here if you are aware of what exactly my next steps should be?

Thanks a lot!

Here's what BHPian VW2010 had to say about the matter:

Honestly, the two poles of this conundrum are being a good human being vs saving yourself from legal trouble. My advice is to take the legal route and allow insurance to manage these circumstances if you do not have any influential connection in this country. FIR is to claim insurance money after an accident. Once the FIR is filed you will end up paying a fine in the court and move on with life. Helping on the side will only invite trouble when they start tenting in front of your house for more money and support. It sounds inhumane but when it comes to money, humanity always takes a back seat.

Here's what BHPian madrasilemon had to say about the matter:

Hello Sir, From my limited knowledge of auditing Regional Offices of PSU Insurance Companies and more particularly, on the basis of reviewing their MACT Claim files, I would jot down the following.

There are two cases filed in case of Motor Vehicle Claim:

1) FIR filed under provisions of Indian Penal Code by Police in Criminal Court. Following are provisions invoked under this case:

• Section 279 IPC - Rash and Negligent driving
• Section 337 IPC - hurting any person due to rash and negligent driving
• Section 338 IPC - causing grievous hurt due to rash and negligent driving
• Section 304A IPC - Causing death due to rash and negligent driving

In general, the punishment includes a fine of a few thousand rupees. Usually, the accused will have to attend the court at least three times before the judgement is passed. The normal practice is to plead guilty without any arguments as if one does not plead guilty, the court may have to remand the person to judicial custody (usually 14 days) for further enquiries into the accident by police authorities.

Although imprisonment is also prescribed as a punishment, it is not generally awarded unless the driver was under the influence of intoxicants or is proved to have committed a wilful accident or has been involved in a hit and run case.

Unless death occurs, the accused is not arrested. Even if arrested, the SHO of the Police has the power to allow table bail/station bail. This situation is not applicable in your case as no death is involved.

2) Civil Case filed by the affected party or their dependants in Motor Accident Claims Tribunal (MACT)

This case is filed for getting compensation from the insured/insurer. Notice is served to both the insured and the insurer. The insurer has the right to invoke provisions of section 170(b) of the Motor Vehicle Act, 1988 to attend the case in MACT in the absence of the insured if the insured failed to respond to notice from MACT. This is the practice in almost all the MACT claim cases. The insured just does not respond to the claim. However, before deciding not to respond to the MACT notice, the insured must ensure that Insurance Certificate is current and valid, and other papers such as RC, Permit & FC (In case of commercial vehicles) are valid. MACT cases are disposed off after a long delay which may in some cases go beyond a decade.

Hope things are clear. Pardon my language, if some terms sound very formal.

Here's what BHPian IshaanIan had to say about the matter:

Contact your insurance provider and ask them if the matter has been settled from their end. Any court appearance will only be to admit guilt towards causing injury which will likely result in a fine of fewer than 2000 Rs. I myself have been in a similar situation. I had to outline the accident once over the phone to my insurance service provider to confirm the claim but never heard of the license having to be suspended. If any of your friends is a lawyer, I'd ask them about it.

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