SBI Motor Accident Claims Annuity Deposit: Know tenure, eligibility, interest rate and more
There is a provision of Rs 5,00,000 with no upper limit which acts as interim relief to the family of the victim.
Rules and regulations are there to maintain discipline in every sphere of the society. The Motor Vehicles Act 1988 caters for various aspects to the legislative provisions, rules and regulations pertaining road transport vehicles. One of the most important provisions is the Motor Accident Claim, the amount of which is decided by Motor Accident Claims Tribunal. Under the Motor Accident Claims Tribunal, there is a provision of Rs 5,00,000 with no upper limit which acts as an interim relief to the family of the victim.
The State Bank of India, the largest public lender, under its Motor Accident Claims Annuity Deposit (MACAD), to credit the compensation by the Tribunal and also allows the claimants of the amount by the Tribunal, to make repayment in annuity installments.
Any individual is eligible to make the deposits under this scheme. Minors are allowed through with a guardian's name.
Amount of Deposit:
The minimum monthly annuity deposit amount is Rs 1,000 for the relevant period. There is no limit on the maximum amount.
The tenure is 36 to 316 months under the directions by the Tribunal or Court. The period less than 36 months will require a normal term deposit.
Rate of Interest:
The interest rate will be as per the duration or tenure of the deposit.
A passbook will be issued for MACAD. In the case of a normal term deposit, a term deposit advice will be issued.
Part lump sum payment or premature withdrawal of the MACAD can only be done under the direction of the Tribunal or Court. There is no penalty charges for premature closure.
Tax deduction at source:
As per Income Tax Rules, interest payment is subject to TDS. Form 15G/15H can be submitted by the Depositor to get exemption from Tax deduction.
The monthly annuity amount, net of TDS, will be credited to the MACT Claims SB account.
There are no loan or advance facility against Annuity deposit.
The nomination for MACAD is allowed under the direction of the Tribunal or Court.
One should note that there is a pre-requisite of MACT Claims SB account for this product. It is with this MACT claims SB account through which Annuity payment/ Premature closure payment/ Part lump sum payment will be made.
Tribunal or Court has a say if there is a request for account transfer.