There has been a steep escalation in the number of automobile accidents in the past few years and the figure is still increasing. According to a study made by the National Transportation Planning and Research Center, Delhi and Trivandrum, a road accident takes place every four minutes in which a person is killed or injured. In a year about twenty five thousand persons are killed and about one lac persons are injured. The Motor Vehicles Act, 1988 deals with the various issues relating to accidents and claims.