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The Motor Vehicles Act 1988
LIABILITY TO PAY COMPENSATION IN CERTAIN CASES ON THE PRINCIPLE OF NO-FAULT
QUESTION BANK
Q.1. Discuss provisions relating to liability without fault in certain cases.
SHORT NOTES
- No fault liability.
SYNOPSIS
- INTRODUCTION-
- LIABILITY WITHOUT FAULT IN CERTAIN CASES (SS. 140 TO 144).
No fault liability in certain cases (S. 140)-
(i) Definition of permanent disablement (S. 142)-
(ii) The right to claim compensation for ‘no fault’ is in addition (S. 141)-
(iii)The principle of ‘no fault’ liability also applies to claims under Workmen’s Compensation Act (S. 143)-
(iv) Overriding effect of the Chapter (S. 144)-
I. INTRODUCTION-
Liability arising out of a motor accident falls originally under ‘tort’. However, the provisions relating to liability arising out of motor vehicle accidents were codified for the first time by the Motor Vehicles Act of 1939. The Motor Vehicles Act of 1988 replaced the earlier Act of 1939. The present Act of 1988 contains XIV Chapters and 217 Sections. It has two Schedules. The Act makes insurance compulsory for every vehicle.
Chapters X to XII and Schedule Second are very important for the sake of study herein. However, considering the syllabus and practicable applicability of the Act, we will restrict our discussion to these provisions.
Chapter X from Ss. 140 to 144 deal with ‘Liability without fault[1]’ in certain cases. Chapter XI from Ss. 145 to 164 deals with ‘insurance of motor vehicle against third party risks[2]’ and Chapter XII from Ss. 165 to 176 deals with ‘Claim Tribunals’. The Second Schedule[3] provides for a ‘structural formula[4]’ to be used while computing compensation payments to the victim.
However, the 2019 amendment in the Motor Vehicles Act, 1988 has removed Chapter X and the sections relating thereto, i.e. S. 140 to S. 144 (the remedy of no-fault liability). Similarly, the remedy of compensation under S. 163 A and the Second Schedule thereunder are removed.[5] They are discussed at the end. However, Chapter XI (S. 145 to S. 164) has been substituted with the new sections, i.e., Ss. 145 to 164 D (We have discussed the new provisions, comparing them with the old when necessary).
In modern times, the number of vehicles has increased enormously, and so have accidents. Many people either die or suffer injuries in accidents. The abovementioned provisions are incorporated in the Motor Vehicle Act to provide compensation relief to accident victims. We will discuss these provisions one by one.
I. LIABILITY WITHOUT FAULT IN CERTAIN CASES (SS. 140 TO 144).
No fault liability in certain cases (S. 140)-
Where the death or permanent disablement of any person results from an accident arising out of the use of a motor vehicle (or motor vehicles), the owners of the vehicles shall be jointly and severally liable to pay compensation in respect of such death or disablement in accordance with the provisions of this Act (S. 140 (1)).
The liability under this section is called ‘no fault’ because the claimant for compensation need not prove that the accident occurred due to any wrongful act, neglect, or default of the driver of the vehicle. He is entitled to the amount even though he himself was negligent in causing the accident. The liability is fixed without proof of fault (Cl. 3 and 4 of S. 140).
The section has fixed the amount for no-fault liability. In case of death of any person in an accident, claimants are entitled to Rs. 50,000 (Fifty thousand only), and in case of permanent disablement, the person injured is entitled to Rs. 25000 (twenty-five thousand). The vehicle owner involved in the accident is liable to pay the amount (S. 140 (2).
The remedy for ‘no fault liability’ is speedy, and the claimant only has to prove that the person died or became disabled in an accident for which compensation is claimed.
(i) Definition of permanent disablement (S. 142)-
The definition of ‘permanent disablement[6]’ is given under S. 142. It defines ‘for the purpose of this chapter permanent disablement of a person shall be deemed to have resulted from the accident of the nature referred to in sub-section (1) of S. 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.
Thus, the section defines permanent disablement as a requisite under S. 140 (1) for ‘no fault liability’. The point to be noted here is that the definition does not mention the minimum percentage of disability requisite to grant a no-fault amount. In other words, any percentage of permanent disability attracts liability under S. 140 (1).
(ii) The right to claim compensation for ‘no fault’ is in addition[7] (S. 141)-
The right to claim compensation for ‘no fault liability’ under S. 140 (1) is in addition to any other right to claim compensation mentioned under this Act or any other law. In other words, a victim can claim compensation under provisions of this or other laws. Compensation for no fault liability is no bar to claiming compensation according to the other provisions of this or other Acts. However, when the compensation is claimed under other provisions of this Act or provisions of any other law, the amount granted for ‘no fault’ liability shall be reduced from the amount so granted (S. 140 proviso to Cl. 5).
However, if the amount subsequently awarded is less than Rs. 50,000 (fifty thousand), Clement is not entitled to any additional amount because Rs. 50,000 (fifty thousand) has already been paid for no fault under S. 140 (1).
(iii) The principle of ‘no fault’ liability also applies to claims under Workmen’s Compensation Act (S. 143)-
According to S. 143, the provision of no-fault liability under S. 140 (1) also applies to the claims under Workmen’s Compensation Act. 1923.
(iv) Overriding effect of the Chapter[8] (S. 144)-
- 144 provides that the provisions of this chapter, i.e., Chapter X, shall have an effect notwithstanding anything contained in any other provisions of this Act or any other law for the time being in force.
In other words, provisions under this chapter, i.e., provisions relating to ‘no fault’ liability and the amount mentioned therein, would not be affected/ barred by any provision under this Act or any other law.
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[1] कोणत्याही चुकी शिवाय/दोष ठरविल्या शिवायची जबाबदारी [ बिना किसी गलती बिना किसी गलती के दायित्व]
[2] त्रयस्थ इसमाच्या अपघाताचा जबाबदारी बद्दल विमा [ तृतीय पक्ष दुर्घटना देयता बीमा]
[3] द्वितीय परिशिष्ट [ दूसरा परिशिष्ट ]
[4] नुकसाण भरपाई देण्या संबंधिचा साचा [ हर्जाने के भुगतान के लिए प्रपत्र ]
[5] The Motor Vehicles Amendment Act, 2019 came into effect on 1st September 2019 it replaced many important provisions of the motor vechicles Act, 1988. However some of the important provisions relating to no-fault liability under Ch. X and those relating to Compensation under Ch. XI came into force later on 1st April 2022.
[6] कायम स्वरूपाचे अपंगत्व [ स्थायी विकलांगता]
[7] चुक न ठरविता दिली जानारी जबाबदारी रक्कम ही जास्तिची असते [ दोष का निर्धारण किये बिना दी गयी देयता राशि अधिक होती है]
[8] प्रकरण 10 मधील ‘चुकीवीना जबाबदारीची’ तरतुद अत्यंन्त महत्वाची असल्यामुळे इतर बाधक तरतुदी असल्यास त्याकडे दुर्लक्ष करण [ चूंकि अध्याय 10 में ‘नो फॉल्ट लायबिलिटी’ प्रावधान बहुत महत्वपूर्ण है, अन्य प्रतिकूल प्रावधान होने पर इसकी अवहेलना की जानी चाहिए।]