Section 149 of MVA : Section 149: Settlement By Insurance Company And Procedure Therefor

Explanation using Example

Imagine John is involved in a car accident with another vehicle driven by Alice. John suffers minor injuries and his car is damaged. Alice's insurance company is notified of the accident. According to Section 149 of The Motor Vehicles Act, 1988, the insurance company assigns an officer to handle John's claim.

Within thirty days, the officer offers John a settlement amount to cover his medical expenses and car repairs. John reviews the offer and decides it is fair, so he accepts it. The Claims Tribunal records the settlement, and the insurance company pays John within thirty days following the recorded settlement, as per the law.

If John had found the offer unsatisfactory and rejected it, the Claims Tribunal would have scheduled a hearing to decide on the claim based on its merits.