LAW, PROCEDURE TO CLAIM COMPENSATION ON THE PRINCIPLE OF “NO FAULT LIABILITY”

 

LAW, PROCEDURE TO CLAIM COMPENSATION ON THE PRINCIPLE OF “NO FAULT LIABILITY”

 

Sections 140 to 144 of Motor vehicles act,1988 ( Section 92-A to 92-E of MV act,1939) and sections 163-A and 163-B of the MV act, 1988 as amended by the act deal with payment of compensation under no fault liability.

Compensation under

No fault liability

 

U/S 140                                                                                                U/S 163-A

In almost all the decisions of the various high courts and supreme court, it has either been stated explicitly or presumed implicitly, that a claimant is entitled to compensation under the MV act, only if he alleges and proves that the driver or owner of the vehicle or some other person has been under fault. In other words, a claimant’s right to compensation is based on fault liability. [state of Punjab Vs V.K.Kalia, 1968 ACJ 401 (P&H)]

    But, the concept of paying compensation under no fault liability is to redress the grievance of the claimants immediately to a certain extent. Therefore, section 92-A was introduced by the amendment to the 1939 act and sec.163-A was introduced for adequate quick compensation under a structural formula on the principle of no fault liability.

    In order to meet the social demand to safeguard the victims of road accidents, on the  recommendations of the Indian law commission, the provision to award compensation under no fault liability was introduced in the act.{Gujarat state road transport corporation Vs  Raman bhai prabat bhai, 1987 ACJ 561 (SC)]. Claiming compensation under no fault liability, the claimant shall not be required to plead and establish that the death or permanent disablement was due to any wrongful act or neglect or default of the owner or owners of the vehicle or vehicles.

  The payment of compensation can be claimed in the case of death or permanent disablement only. Therefore, for other cases, persons cannot claim compensation under no fault liability.

   The definition of permanent disablement has been given in section 142 of the motor vehicles act,1988 which is as follows:

  Section 142: Permanent disablement –

For the purposes of this chapter, permanent disablement of a person shall be deemed to have resulted from an accident of the nature referred to in sub – section (1) of sec 140 if such person has suffered by reason of the accident , any injury or injuries involving:-

a)    Permanent privation of the sight of either eye or the hearing of either ear, or privation of any member or joint; or

b)    Destruction or permanent impairing of the powers of any member or joint, or

c)     Permanent disfiguration of the head or face.