The Union Ministry of Road Transport has increased the minimum compensation payable to road accident victims or their kin in case of death or permanent disability or minor injury irrespective of their age and income criteria.

As per the notification issued by the ministry, in case of death due to a road accident, the compensation will be Rs 5 lakh and for permanent disability, it will be in the range of Rs 50,000 to Rs 5 lakh. This will increase by 5% annually.

For accidents resulting in minor injury, a fixed compensation of Rs 25,000 will be payable.

The higher compensation is also likely to increase the third party premium outgo for vehicle owners, said an official in the ministry.

However, the victims of the accident will have an option to approach the Motor Accident Claims Tribunal (MACT) if they believe they deserve higher compensation.

At present, the Motor Vehicles Act provides for Rs 50,000 compensation in case of death and Rs 25,000 for permanent disability.

With low compensation, most of the victims approach the MACT seeking higher relief.