Motor Accident Claims Tribunal (MACT)
What the Motor Accident Claims Tribunal is, who can apply to it, the fixed no-fault compensation under section 164, how fault-based awards use a multiplier, and how far the third-party insurer must pay.
What the Tribunal is
The Motor Accident Claims Tribunal (MACT) decides compensation claims arising from motor vehicle accidents. State Governments constitute these Tribunals under section 165 of the Motor Vehicles Act, 1988.
It hears third-party claims for death, bodily injury and damage to property. An application can be made by the injured person, the owner of the damaged property, the legal representatives of a person who has died, or a duly authorised agent.
Two routes to compensation
Section 164, in force from 1 April 2022, provides a fixed sum without the claimant having to plead or prove fault: ₹5 lakh on death and ₹2.5 lakh on grievous hurt. It replaced the old sections 140 (no-fault liability) and 163A (structured formula), which now matter only for accidents before that date.
The other route rests on fault: the claimant shows that negligence in the use of the vehicle caused the accident, and the Tribunal assesses the loss on the evidence.
How a fault-based award is built
Where the loss is one of income or dependency, the Tribunal arrives at an annual figure and multiplies it by a multiplier, a number that reflects the earning years lost. The courts apply a standard table that starts at 18 for young adults and steps down with each older age band, because fewer earning years remain.
If the victim was partly at fault, compensation is reduced proportionately: a victim found 20% at fault receives 20% less.
What the insurer must pay
Under the standard policy, the insurer's liability for third-party death or bodily injury carries no rupee limit: it answers for what the Tribunal awards. Only property damage is limited, to ₹7.5 lakh in the private-car policy and ₹1 lakh in the two-wheeler policy.
A breach of policy conditions by the owner does not ordinarily leave the victim unpaid. The leading authority is National Insurance Co. Ltd. v. Swaran Singh (2004): the insurer remains answerable to the victim, and where it proves a breach such as knowingly letting an unlicensed person drive, the Tribunal can direct it to pay the victim first and recover the amount from the owner.
Rules at a glance
The unlicensed nephew
Mahesh owns a delivery van in Indore and lets his nephew drive it, knowing he has no driving licence. The van kills a pedestrian, and the family applies to the Tribunal.
The insurer proves that Mahesh knowingly handed the van to an unlicensed driver. Following Swaran Singh, the Tribunal will ordinarily direct the insurer to pay the family and then recover the amount from Mahesh. The victim's family is protected; the cost of the breach falls on the owner.
Multiplier and contributory negligence
- A young adult dies in an accident. Suppose the Tribunal assesses the annual loss to the family at ₹2,40,000 (an assumed figure; how it is arrived at is outside this note).
- Multiplier of 18: ₹2,40,000 × 18 = ₹43,20,000.
- The deceased is found 20% at fault: ₹43,20,000 × 20% = ₹8,64,000.
- Compensation under this head = ₹43,20,000 − ₹8,64,000 = ₹34,56,000.
Result. ₹34,56,000 is awarded under this head; with no rupee limit on third-party death, the insurer of the vehicle at fault answers for it. Other heads of compensation are left out.
Key points
- MACT is constituted by State Governments under section 165 of the Motor Vehicles Act, 1988, and hears third-party accident claims.
- Section 164 gives a fixed ₹5 lakh on death and ₹2.5 lakh on grievous hurt without proof of fault.
- The multiplier falls as the victim's age rises, starting at 18 for young adults.
- Contributory negligence reduces compensation proportionately.
- Third-party death or injury liability has no rupee limit; on a proved breach the insurer pays the victim and recovers from the owner.
Common misunderstandings
- MACT is not the place for a dispute with your own insurer over an own-damage claim; it hears third-party accident claims.
- Sections 140 and 163A are not the current no-fault provisions; section 164 replaced them from 1 April 2022.
- Unlimited liability does not extend to property; third-party property damage is limited to ₹7.5 lakh for a private car and ₹1 lakh for a two-wheeler.
Questions people ask
Who can apply to the Tribunal?
The injured person, the owner of the damaged property, the legal representatives of a person who has died, or a duly authorised agent.
Does a claimant always have to prove negligence?
No. Section 164 provides a fixed ₹5 lakh on death and ₹2.5 lakh on grievous hurt without pleading or proving fault.
Can the insurer refuse to pay because the driver had no licence?
Not as against the victim. Where the breach is proved, the Tribunal ordinarily directs the insurer to pay the victim and recover the amount from the owner.
What this lesson relies on
- Motor Vehicles Act, 1988 — sections 164 and 165
- National Insurance Co. Ltd. v. Swaran Singh, Supreme Court of India (2004)
- Standard motor policy wording — Section II (Liability to Third Parties), third-party property damage limits
This lesson was reviewed independently against these sources on 8 October 2026. Rules change: check the current regulation, scheme document or policy wording before relying on any figure. This is education, not advice.