Comparative Chart......................................................................................................... [77]
Chapter
1 Laws on the Subject ....................................................................................... 1
Preliminary.................................................................................................................. 1
Laws on the subject—ss. 140 to 176 of the Motor Vehicles Act 1988....................... 2
Motor Vehicles Act 1988............................................................................................ 3
2 Liability without Fault 4
Legislative changes..................................................................................................... 6
No fault liability scheme.............................................................................................. 6
Scope of this Chapter.................................................................................................. 8
Object.......................................................................................................................... 8
Summary enquiry by the Claims Tribunal................................................................... 8
No burden on the claimant to plead or establish
absence of negligence.............................................................................................. 9
Insurer not to raise statutory defence........................................................................... 9
Identity of the vehicle not established.......................................................................... 9
Section 140 not retrospective.................................................................................... 10
Quantum under s. 140............................................................................................... 10
Arising out of............................................................................................................ 10
Application under s. 140 even without filing an application
under s. 166........................................................................................................... 10
Dependency of the claimant if to be proved.............................................................. 11
Permanent disablement.............................................................................................. 11
Enquiry before passing interim award under s. 140 of the Act................................. 11
The question of negligence of any party not needed to be proved............................. 12
Practice and procedure.............................................................................................. 13
Joint liability.............................................................................................................. 14
Liability of insurance company under s. 140............................................................. 14
Owner of the vehicle [s. 140(1)]............................................................................... 14
Financier of the vehicle............................................................................................. 14
Liability of the driver................................................................................................. 14
2 Liability without Fault—continued
Service of notice........................................................................................................ 14
Interim award to be adjusted with final award........................................................... 14
Interest...................................................................................................................... 14
Deposit of amount in bank in fixed deposit............................................................... 15
Claim under s. 163A of the Act................................................................................ 15
Res judicata............................................................................................................... 15
Appeal....................................................................................................................... 15
Revision.................................................................................................................... 15
3 Insurance of Motor Vehicles against Third Party Risks 16
Legislative history..................................................................................................... 17
Third party—meaning............................................................................................... 17
Dispute as to insurance cover.................................................................................... 18
Compulsory insurance of Government vehicle......................................................... 18
Exemption to vehicles owned by the State Transport undertaking............................ 18
A gratuitous passenger of a private vehicle............................................................... 19
Third party risk......................................................................................................... 19
Owner of the vehicle does not come within the
expression “third party”......................................................................................... 19
Owner of the vehicle to take insurance...................................................................... 19
Legislative history..................................................................................................... 21
Section 147 to be given wider meaning..................................................................... 21
Insurer’s liability—no maximum limit...................................................................... 21
Arising out of use of vehicle..................................................................................... 21
Liability of insurance company under the policy....................................................... 22
Insurance policy issued prior to enforcement of Motor
Vehicles Act 1988................................................................................................. 22
Insurer cannot avoid liability on the plea that the driver
had no driving licence............................................................................................ 22
Liability of insurer under the third party risk—
when arises—when not......................................................................................... 23
Insurance company’s liability of the passengers carried
in goods vehicle..................................................................................................... 24
Gratuitous passenger in a private vehicle.................................................................. 25
Owner of the vehicle................................................................................................. 26
Employee of the insured............................................................................................ 26
Policy when becomes operative................................................................................ 26
Policy cancelled......................................................................................................... 26
Insurer having limited liability................................................................................... 27
Labourers travelling a tractor..................................................................................... 27
Insurance policy covering risk of paid driver............................................................ 27
Accident in overloaded stage carriage....................................................................... 27
Incorrect mention of the chassis number and engine number
of the vehicle in policy........................................................................................... 28
Section 147(5)—breach of term of policy................................................................. 28
Driver was having a fake licence............................................................................... 28
Driver not renewed licence on the date of accident.................................................... 29
3 Insurance of Motor Vehicles against Third Party Risks—continued
Legislative history..................................................................................................... 31
Liability of the insurer............................................................................................... 31
Policy of insurance issued on the date of accident..................................................... 32
Liability of the insurance company under s. 149(1).................................................. 33
Section 149(4) and proviso limited grounds of liability and
third party claims................................................................................................... 34
Section 149(5)—limited amount of liability in insurance
contract and third parties........................................................................................ 34
Section 149(2)—defences available to the insurer..................................................... 34
Right and scope of the defences available to the insurer
under s. 149(2) read with s. 149(7) of the Act...................................................... 34
Plea of limited liability of the insurer......................................................................... 35
Fundamental breach of the insurance contract to be established................................ 35
Driver not having proper driving licence................................................................... 36
Driving licence expired but not renewed within time................................................ 37
Licence found to be fake........................................................................................... 37
Driver not authorised to drive transport vehicle........................................................ 38
Truck driver causing accident—no licence to drive truck.......................................... 38
Driver holding learner’s licence................................................................................ 38
Overloading of vehicle.............................................................................................. 38
Insurer paid compensation when there was breach of
condition of policy................................................................................................. 39
Abetment of appeal against driver on account of his death—effect........................... 41
Accident taking place during a few hours of interregnum between
the expiry of the first policy and commencement by next policy........................... 42
Deemed transfer of insurance policy......................................................................... 43
Extent of liability of the insurer in case of deemed transfer....................................... 44
Intimation of transfer given to R.T.A........................................................................ 44
Liability of insurance company even if no intimation given...................................... 44
Section 158(6)—direction by Supreme Court for strict and
prompt compliance................................................................................................ 45
Legislative history..................................................................................................... 47
Hit and run motor accident........................................................................................ 48
Grievous hurt............................................................................................................ 48
Compensation to be paid by the insurance company................................................. 49
Fixed amount of compensation................................................................................. 49
Payment of compensation in hit and run motor accident cases.................................. 49
Claim under s. 161 vis-a-vis s. 140 of the Act.......................................................... 49
Objection of insurance company before Claims Tribunal
and petitioner’s compensation under ss. 140 and 166
is not maintainable................................................................................................. 49
Identification of vehicle............................................................................................. 50
Refund of compensation........................................................................................... 50
Obligation of MAC Tribunal under sub-sec. (2) of s. 162........................................ 51
Object........................................................................................................................ 51
Solatium scheme....................................................................................................... 52
Solatium fund under Motor Vehicles Act 1939........................................................ 53
3 Insurance of Motor Vehicles against Third Party Risks—continued
Solatium fund under s. 161 of the Motor Vehicles Act 1988.................................... 53
Delay in disposal of claim petition under s. 161 of the Act....................................... 53
Duty of the claimant in hit and run motor accident case............................................ 53
Solatium Scheme 1989.............................................................................................. 53
Form I....................................................................................................................... 58
Form II...................................................................................................................... 59
Form III.................................................................................................................... 60
Form IV.................................................................................................................... 60
Form V..................................................................................................................... 61
4 Compensation on Structured Formula Basis 62
Scope and object of compensation on structured formula basis ............................... 62
Second Schedule—if to be followed in all circumstances......................................... 63
Applicability of second schedule in a claim under s. 166 of the Act......................... 63
Scope limited............................................................................................................. 63
Object of s. 163A...................................................................................................... 63
Social security provision........................................................................................... 64
The payment of compensation for no fault liability
under structured formula—final............................................................................ 64
Section 163B............................................................................................................. 64
Power of claimant to opt for either under s. 163A or 166 of the Act........................ 64
Amendment petition to scale down income to invoke s. 163A.................................. 64
Claim petition under s. 166 dismissed—prayer to convert the
petition to claim under s. 163A.............................................................................. 65
Section 163A—analysed........................................................................................... 65
Section 163A provides for expeditious payment of compensation............................ 66
Statutory liability of the insurer................................................................................. 66
Who can make a claim for compensation under s. 163A........................................... 66
Section 163A—if retrospective................................................................................. 66
Requirement to attract s. 163A of the Act................................................................. 67
No fault liability........................................................................................................ 68
Amendment of the application under s. 163A........................................................... 68
Amendment to reduce the annual income.................................................................. 68
Claim petition under s. 163A—defence of insurance company—
not proper.............................................................................................................. 69
No permanent disablement—no claim under s. 163A............................................... 69
Driver a joint tortfeaser............................................................................................. 69
Death of the owner of the vehicle in motor accident.................................................. 69
A person cannot be claimant and also owner of the vehicle...................................... 69
Compensation under s. 163A not interim.................................................................. 70
Gratuitous passenger................................................................................................. 70
Claim under s. 163A—grounds for challenge........................................................... 70
Liability under s. 163A—a statutory liability............................................................ 70
Table in Second Schedule......................................................................................... 70
Liability of the insurance company in excess of contractual limit.............................. 71
Amendment of claim petition to convert it to one under s. 166
of the Act............................................................................................................... 71
4 Compensation on Structured Formula Basis—continued
Withdrawal of petition under s. 163A without liberty to sue
afresh on the same cause of action......................................................................... 71
Claim petition under s. 92A of old Act—prayer to convert it into
under s. 163A of the new Act............................................................................... 71
Choice of forum........................................................................................................ 71
Negligence of the driver not required to prove.......................................................... 71
Negligence of the victim............................................................................................ 72
Compensation under s. 163A—when insurance company not liable........................ 72
Compromise in a petition under s. 163A of the Act—no effect on
petition of other claimant under s. 166 of the Act.................................................. 73
Determination of compensation on structured formula basis..................................... 73
Multiplier under Second Schedule............................................................................ 77
Deduction.................................................................................................................. 78
5 Claims Tribunal ............................................................................................... 80
Legislative changes................................................................................................... 80
Constitution of Claims Tribunal................................................................................ 81
Qualification to be members of the Tribunal............................................................. 81
Two or more Claims Tribunal—distribution of business.......................................... 82
State Government not bound to constitute a Claims Tribunal.................................... 82
