In 1988 a new Motor Vehicle Act have been introduced and in new Motor Vehicle Act's Chapter 10

provides for interim award. Chapter 11 provides for insurance of motor vehicle against third party risk
and Chapter 12 provides for the constitution of Claims Tribunal and adjudication of claim and related
matters. This law is still in an era of serious changes. Supreme Court has number of times held that
this is a welfare legislation and the interpretation of provision of law is required to be made so as to
help the victim. In this process Supreme Court has passed various judgments in recent past, which
have restricted the statutory defenses to the Insurance Company to a greater extent as law relating
to burden of proof have been totally changed. Limited defenses as to not holding valid driving
license, use of vehicle for hire and reward, use of transport vehicle for the purpose not allowed by
permit are required to be proved in so stringent manner that insurer are not getting advantage of
these defenses.

Scheme of Chapter 10 and 11 of Motor Vehicle Act:

Chapter 10 with Sections 140 to 144 provides for interim compensation on No Fault' Basis.
According to this provision Rs. 50,000/- is to be given to the kith and kin of the deceased and Rs.
25,000/- to the grievously injured victim. The compensation under Section 140 is made payable if
prima facie evidence of following is available;
(1) Accident by the offending vehicle;
(2) Offending vehicle being insured;
(3) Death or grievous injuries have been caused.

Unlike to main claim petition, negligence is not required to