NATIONAL UNIVERSITY OF STUDY AND

RESEARCH IN LAW

RESEARCH PROJECT

IN

Law Of Torts

SUBMITTED TO: SUBMITTED BY:

Dr. SUBIR KUMAR NIKHIL KUMAR KARN

Assistant Professor Semester : Ist
NUSRL, Ranchi Roll.no.- 1054

NATIONAL UNIVERSITY OF STUDY AND RESEARCH IN LAW RANCHI

Table of Contents
Declaration……………………………………………………………………………………………………………………………………………..1
Table Of Contents……………………………………………………………………………………………………………………………………2

ABSTRACT:..................................................................................................................................................... 3
Question For Discussion:............................................................................................................................... 4
INTRODUCTION ............................................................................................................................................. 4
Where to File an Application for Compensation ?........................................................................................ 5
5
Punitive Provision under the Motor Vehicles Act ....................................................................................... 5
6
Compensatory provisions under the Motor Vehicle Act or How to Claim Compensation/damages if a
person gets injured or dies in an accident: ............................................................................................... 5
I. Fixed compensation on the principle of no fault as provided under Section 140 of the Act ................ 5
II. Alternative method of compensation or Payment of Compensation on structured formulae basis – 6
III. Compensation in case of Hit & Run Motor Accidents where identity of vehicle is not traceable....... 6
How to Make Application For Grant Of Compensation ............................................................................ 7
Section 140 of the MVI Act,19883 ................................................................................................................. 7
Relevant Case Laws: ...................................................................................................................................... 9
4
1. Ram Kumar And Ors. Vs The United India Insurance Company Limited & Ors. .......................... 9
3. 6U.I.INS.CO.LTD. v. RAJU & ORS.................................................................................................... 9
7
United India Insurance Co. Ltd. v. Raju .............................................................................................. 10
8
SMT MARY ASHWINI v. SRI S SANNIRAJA .......................................................................................... 10
9
Bajaj Allianz Petitioners v. Mst. Fareeda & Ors S .............................................................................. 10
Section 160 of the MVI Act ......................................................................................................................... 11
Relevant Case Laws: .................................................................................................................................... 12
CONCLUSION:.............................................................................................................................................. 15
BIBLIOGRAPHY ............................................................................................................................................ 16
Section 140 and 166 of Motor Vehicle Act : Insurance
Claims

ABSTRACT:
Increase in the number of motor vehicles, poor maintenance of roads and negligence by drivers
has led to substantial increase in the road accidents resulting in death or injuries to victims. Prior
to insertion of Section 163-A in the Motor Vehicles Act, 1988 when the victim or his heirs
approached Motor Accident Claims Tribunals, they were required to prove negligence by the
driver of the offending vehicle in order to make the owner liable to pay compensation. This at
times was a daunting task for the heirs of the deceased who did not witness the accident. Even in
case of the injured victim she/he could hardly be expected to recall the exact manner in which
the accident occurred. Denial of compensation on the ground that negligence of the driver of the
vehicle was not established was highly unfair to the victim, particularly in a welfare State.
Realising this lacunae, Parliament passed the Motor Vehicles (Amendment) Act, 1994 (54 of
1994) inserting Section 163-A in the Motor Vehicles Act, 1988 with effect from November 14,
1994. The section provides for compensation on a structured-formula basis as indicated in a
tabular form in the Second Schedule forming part of the Act. In a claim for compensation under
this provision the claimant is not required to plead or establish that death or permanent
disablement was due to "any wrongful act or neglect or default of the owner of the vehicle". In
other words, the claimant is entitled to compensation in accordance with the Second Schedule on
the principle of no-fault liability. The figures of compensation indicated in a tabular form in the
Second Schedule show that the compensation awardable under Section 163-A of the Motor
Vehicles Act is quite substantial compared to compensation under Section 140 which is limited
to Rs 50,000 in case of death and Rs 25,000 in case of permanent disablement. For instance in
the case of death of a person aged 25 years whose annual income was Rs 12,000, the
compensation payable to the heirs as per the Second Schedule would work out to Rs 1,36,000.
Section 163-A is thus an innovative and laudable provision intended to provide for immediate
relief to the victims of motor accidents. Surprisingly, however, the lawyers and litigants have not
come forward to take maximum benefit of this statutory amendment with the result that the
victims have to wait for long years till final adjudication of the claim petition. This situation
prevails perhaps due to certain observations made by the Supreme Court in U.P. SRTC v. Trilok
Chandra1. The observations are to the effect that the Second Schedule contains errors of
calculation and tribunals may take it as a guide and not as a ready reckoner. The decision of the
Supreme Court in Trilok Chandra1 asserting that "the calculation of compensation and the
amount worked out in the Schedule suffer from several defects" seem to be the result of a
mistaken view of the purpose of insertion of Sections 163-A and 163-B in the Motor Vehicles
Act, 1988 and not correctly appreciating the manner and method in which the table in the Second
Schedule is to be utilized while calculating the compensation.

Question For Discussion:

Who can and where to file the application for Motor Vehicle Accident compensation?
When can the application be filed?
What amount of compensation can be granted ?
Conditions necessary for getting compensation?

INTRODUCTION
1
Section 140 & 2Section 166 of Motor Vehicle Act, deals with the granting of insurance claim
for the injury sustained. The section 140 of the act has provisions for instant granting of
insurance whereas the section 166 of the Motor Vehicle Act deals with the provision of financial
help in a longer term. Under section 140 the financial help is negligent as compared to the
section 166 which has the provision for greater financial help. Section 140 has a fixed amount
for compensation that is Rs.25000 for sustained injury and Rs.50000 for death of the person
whereas in section 166 of the Motor vehicle Act there is a perfect mechanism for the calculation
of the loss sustained based on various factors such as Income, liability of family, no. of minor
children, his age among other things, which is mentioned in the section 163(a) of the Motor
Vehicles Act.
Where to File an Application for Compensation ?
Every application shall be made, at the option of the claimant,

1. To the Claims Tribunal having jurisdiction over the area in which the accident
occurred or
2. To the Claims Tribunal within the local limits of whose jurisdiction the claimant
resides or carries on business or
3. Within the local limits of whose jurisdiction the defendant resides.

5
Punitive Provision under the Motor Vehicles Act
The Motor Vehicles Act, 1988 provides for punitive provisions wherein sentence or fine or both
is imposed on the violators. Even Criminal Laws deals with a situation when driver of offending
vehicle commits accident due to sheer negligent leading to death of the Victim.

The Motor Vehicles Act provides various Rules & Regulations for the public and it has wide
importance in our society due to advancement in automobile industry. If any of the rules of the
Act are violated, serious punishments are imposed upon the offender. We must understand the
object behind the Act and should play vital role in its implementation since we are the sole
beneficiaries and violators under the Act.

6
Compensatory provisions under the Motor Vehicle Act or How to Claim
Compensation/damages if a person gets injured or dies in an accident:

I. Fixed compensation on the principle of no fault as provided under Section

140 of the Act
Where death or permanent disablement of any person has resulted from an accident arising out of the
use of a motor vehicle or motor vehicles, the owner of the vehicle be liable to pay compensation in
respect of such death or disablement.
The amount of compensation which shall be payable in respect of the death of any person shall be
fixed sum of Rs. 50,000/- and in respect of permanent disablement shall be a fixed sum of Rs.
25,000/-.
Claimant shall not be required to plead and establish that the death or permanent disablement in
respect of which the claim has been made was due to any wrongful act, neglect or default of the
owner or owners.
The claim shall not be defeated by reason of any wrongful act, neglect or default of the person in
respect of whose death or permanent disablement the claim has been made nor shall the quantum of
compensation in respect of such death or permanent disablement be reduced on the basis of the share
of such person in the responsibility for such death or permanent disablement.
After exercise of this option, Claimant cannot opt for compensation under section 163 A based on
structured formulas as provided herein below

II. Alternative method of compensation or Payment of Compensation on

structured formulae basis –
Sec 163A.The owner of the motor vehicle of the authorized insurer shall be liable to pay in the case
of death or permanent disablement due to accident arising out of the use of motor vehicle,
compensation, as indicated in the Second Schedule, to the legal heirs or the victim as the case may
be.
However where the person is entitled to claim compensation under section 140 and section 163A, he
shall file the claim under either of the said section and not under both.

III. Compensation in case of Hit & Run Motor Accidents where identity of
vehicle is not traceable
Where the identity of the vehicles is not traceable such cases are called hit and run cases, a fixed
compensation is provided to the victims from the Solatium Fund created by the Government. It must
therefore be shown that identity of the motor vehicle which caused the accident could not be traced
or ascertained inspite of reasonable efforts, meaning thereby that the accident must be shown to have
occurred on account of the victim being hit by some unidentified vehicle which hit him and ran
away.
How to Make Application For Grant Of Compensation
An application for compensation is made under section 166 of the Motor Vehicles Act and shall be
accompanied by a court fee of Rs. 10 in the form of court-fee stamps.
Particulars to the submitted in the Application

Following particulars are required to be provided when a Claimant files application seeking grant of
compensation:-

1. Name and father’s name of the person injured/dead (husband’s name in the case of married
woman and widow).
2. Full address of the person injured/dead.
3. Age of the person injured/dead.
4. Occupation of the person injure/dead.
5. Name address of the employer of the insured/dead, if any.
6. Monthly income of the person injured/dead.
7. Whether the person in respect of whom compensation is claimed pay income tax (to be
supported by documentary evidence)
8. Place, date and time of accident.
9. Name and address of Police station in whose jurisdiction the accident took place or was
registered.

Section 140 of the MVI Act,19883

Liability to pay compensation in certain cases on the principle of no fault.—

1. Where death or permanent disablement of any person has resulted from an accident
arising out of the use of a motor vehicle or motor vehicles, the owner of the vehicle
shall, or, as the case may be, the owners of the vehicles shall, jointly and severally, be
liable to pay compensation in respect of such death or disablement in accordance with
the provisions of this section.
2. The amount of compensation which shall be payable under sub-section (1) in respect
of the death of any person shall be a fixed sum of 1[fifty thousand rupees] and the
amount of compensation payable under that sub-section in respect of the permanent
disablement of any person shall be a fixed sum of 2[twenty-five thousand rupees]
3. In any claim for compensation under sub-section (1), the claimant shall not be
required to plead and establish that the death or permanent disablement in respect of
which the claim has been made was due to any wrongful act, neglect or default of the
owner or owners of the vehicle or vehicles concerned or of any other person.
4. A claim for compensation under sub-section (1) shall not be defeated by reason of any
wrongful act, neglect or default of the person in respect of whose death or permanent
disablement the claim has been made nor shall the quantum of compensation
recoverable in respect of such death or permanent disablement be reduced on the
basis of the share of such person in the responsibility for such death or permanent
disablement. 3[(5) Notwithstanding anything contained in sub-section (2) regarding
death or bodily injury to any person, for which the owner of the vehicle is liable to
give compensation for relief, he is also liable to pay compensation under any other
law for the time being in force: Provided that the amount of such compensation to be
given under any other law shall be reduced from the amount of compensation payable
under this section or under section 163A.]
Relevant Case Laws:
4Ram Kumar And Ors. Vs The United India Insurance Company Limited &
Ors.

Order 17/04/2017 This civil misc. appeal under Section 173 of MV Act, 1988 has been
filed by the appellants/claimants against the impugned order dated 24.07.2015 passed by
the...has passed order on application under Section 140 of MV Act against the respondent
Nos.2 to 4 and exonerated the Insurance Company. The claimants have right to recover
the amount ...petition without being influenced by the order passed on application
under section 140 of mv act. The civil misc. appeal stands disposed of. (GOVERDHAN
BARDHAR)

5
THE NEW INDIA ASSURANCE CO. LTD. v. KALCHI & ORS.

COURT: RAJASTHAN HIGH COURT DATE: 8 MAR, 2017

Tribunal, Jodhpur Metropolitan whereby the learned Tribunal has allowed the application
under Section 140 of MV Act and awarded interim compensation of Rs.50,000/- to the
claiman...which Mukesh Bhai Motiram expired. Respondent No.7 is the owner of the said
tractor and the said tractor is insured with the appellant- Insurance Company. For
decision of application under section 140 of ...in the impugned order of interim award
passed under section 140 of mv act. The appeal is without force. Hence, dismissed.
(GOVERDHAN BARDHAR) J. ms/-92 ...

6
U.I.INS.CO.LTD. v. RAJU & ORS.

COURT: RAJASTHAN HIGH COURT DATE: 3 MAR, 2017

No.RJ 03GA 0884. Hence the appellant-Insurance Company is not liable to pay any
compensation but while deciding the application under section 140 of mv act, the learned
Tribunal has not taken into...that the appeals are filed against the interim award passed
under section 140 of mv act and while deciding the application under section 140 of mv
act involveme...section 140 of mv act, involvement of vehicle is primary consideration
 and the death or injury was consequent result of the accident. As alleged in the (4 of 4)
[CMA-5105/2011] c...

7United India Insurance Co. Ltd. v. Raju

COURT: RAJASTHAN HIGH COURT DATE: 3 MAR, 2017

To pay any compensation but while deciding the application under Section 140 of MV
Act, the learned Tribunal has not taken into consideration this aspect of the matter.
Therefore, the impugned ord...Section 140 of MV Act and while deciding the application
under Section 140 of MV Act involvement of the vehicle in the accident is to be seen.
The appe...simple and grievous injuries and subsequently succumbed to death. For the
decision of application under Section 140 of MV Act, involvement of vehicle is primary
consideration and the deat...

8
SMT MARY ASHWINI v. SRI S SANNIRAJA

COURT: KARNATAKA HIGH COURT DATE: 3 NOV, 2020

This is an appeal filed by the claimants challenging the order dated 13.09.2013 passed by
the Tribunal rejecting an interim application filed by the claimants under Section 140 of
Motor Vehicles Act .... Premakumar who died in an accident while riding a motorcycle.
The claimants filed a claim petition under Section 166 of the MV Act claiming
compensation of a sum of Rs.9,00,000/-. Along with the...MV Act claiming
compensation of a sum of Rs.50,000/-. 3. The Tribunal noticed the objection filed by the
insurer that the accident was due to the negligence of the deceased.

9
Bajaj Allianz Petitioners v. Mst. Fareeda & Ors S
 COURT: JAMMU AND KASHMIR HIGH COURT DATE: 4 FEB, 2011.
Section 140 of Motor Vehicles Act (hereinafter referred to as "MV Act") has been
allowed and an amount ...(respondents No.1 to 4). 2. Death of one Mohammad Abdullah
Dagga in the road accident gave rise to the filing of claim petition for compensation
under section 166 of the mv act. A...fault basis" is governed by section 140 of mv act, in
two situations i.e. when due to the accident death or permanent disablement of the
persons out of the use of motor vehicle.

Section 160 of the MVI Act

An application for compensation arising out of an accident of the nature

specified in sub-section (1) of section 165 may be made
1. by the person who has sustained the injury; or
2. by the owner of the property; or
3. where death has resulted from the accident, by all or any of the legal representatives of
the deceased; or
4. by any agent duly authorised by the person injured or all or any of the legal
representatives of the deceased, as the case may be: Provided that where all the legal
representatives of the deceased have not joined in any such application for compensation,
the application shall be made on behalf of or for the benefit of all the legal representatives
of the deceased and the legal representatives who have not so joined, shall be impleaded
as respondents to the application. 1[(2) Every application under sub-section (1) shall be
made, at the option of the claimant, either to the Claims Tribunal having jurisdiction over
the area in which the accident occurred, or to the Claims Tribunal within the local limits
of whose jurisdiction the claimant resides or carries on business or within the local limits
of whose jurisdiction the defendant resides, and shall be in such form and contain such
particulars as may be prescribed: Provided that where no claim for compensation under
section 140 is made in such application, the application shall contain a separate statement
to that effect immediately before the signature of the applicant. The Claims Tribunal shall
 treat any report of accidents forwarded to it under sub-section (6) of section 158 as an
application for compensation under this Act.

Relevant Case Laws:

11SMT. YASHODHA B.S. v. AMEER JAN B.

COURT: KARNATAKA HIGH COURT DATE: 13 JAN, 2020

The appellant there upon filed a petition under Section 166 of Motor Vehicle Act,
1989 claiming compensation. The appellant was ...injuries namely the fracture of
humerus as well as ulna bone. The appellant was an inpatient from 02.05.2011 to
13.05.2011 and during the aforesaid period the appellant underwent surgery with
fixation of...

12
United India Insurance Co. Ltd. v. Sunil Kumar & Ors. S

COURT: DELHI HIGH COURT DATE: 13 OCT, 2017

The first respondent (claimant) on 20.07.2015 had instituted accident claim case (suit
no. 215/15) seeking compensation under Section 166 of Motor ...for injuries and
permanent disability suffered on account of motor vehicle accident that had occurred
on 05.06.2015 involving bus registration no. DL1PC9649 of Delhi...

13
Smt.Vineeta Sharma v. Brajesh Kumar Yadav

COURT: MADHYA PRADESH HIGH COURT DATE: 21 MAR, 2016.

A claim petition under Section 166 of Motor Vehicle Act was filed by his mother-
Smt. Chanda Devi and brothers-Dharmendra Kumar Sharma and Jitendra Kumar
Shar...petition under Section 166 of Motor Vehicle Act for the compensation in
connection with the death of her husband. The said claim case was dismissed vide
 order d...by the appellants. The appellants again filed a petition under Section 166 of
Motor Vehicle Act for compensation on the basis of the death of the deceased

14
JAI RAM v. PREM SAGAR

COURT: PUNJAB & HARYANA HIGH COURT DATE: 17 MAY, 2019

Lamzane and another, 2018 (4) RCR (Civil) 124. Said authority is regarding
compensation under Section 166 of Motor Vehicle ...and not under Section 163-A of
Motor Vehicle Act, 1988. I am of view that in the absence of medical bills, on
account of disability and amount which is...under Section 163-A of Motor Vehicle
Act, compensation to the tune of Rs. 65,000/- was awarded to appellant-claimant on
account of injuries received by him in motor.

15
Hemant Singh v. Ballu And Others

COURT: RAJASTHAN HIGH COURT DATE: 26 APR, 2019.

The appellant has failed to establish that he was husband of the deceased.3. Appellant
had filed claim petition under Section 166 of Motor Vehicle Act, 1988, se...account of
death of Sunita @ Nisha in the motor vehicle accident which had occurred on
25.7.2009.4. Respondent No. 4 Insurance Company took an objection that the
deceased was not the...Sabina, J.:— Appellant has filed this appeal challenging the
award dated 21.1.2017 passed by the Motor Accident Claims Tribunal whereby claim
petition filed by the appellant was...
Ramveer Singh And Another v. United India Insurance Co. Ltd. And Others

COURT: ALLAHABAD HIGH COURT DATE: 1 AUG, 2012.

Whereby his claim petition filed under section 166 of Motor Vehicle Act for an award
of Rs. 10 lacs on account of death of his minor daughter in ...Rakesh Tiwari and Anil
Kumar Sharma, JJ.:— The appellants have challenged the award dated 25.4.2012
passed by M.A.C.T/District Judge, Mathura in M.A.C No. 518 of 2010 by way of this
appeal...claim under Motor Vehicles Act it is imperative on the claimants to prove by
adducing cogent and reliable evidence that...

17
Sukhram v. Ratan Singh And Others

COURT: RAJASTHAN HIGH COURT DATE: 15 APR, 2019

Appellant had filed claim petition under Section 166 of Motor Vehicle Act, 1988,
seeking compensation on account of injuries suffered the motor vehicle accident
which had occurred on 19.10.2013.5. Appellant was aged about 30 years at the time
of accident.6. As per Exhibit-16 (copy placed on record by...Sabina, J.:— Appellant
has filed this appeal challenging the award dated 15.9.2017 passed by the Motor
Accident Claims Tribunal, seeking enhancement of compensation amount.

18
New India Assurance Co Ltd v. Krishna Devi & Ors

COURT: DELHI HIGH COURT DATE: 24 FEB, 2016.

Section 166 of Motor Vehicle Act, 1988 (MV Act), the burden of proof of negligence
in driving of the offending MAC.APPL. No.244/2011 Page 2 of 3 ...impleaded in the
proceedings before the tribunal with Satbir Singh and Surender Singh described as
driver and owner respectively of the offending vehicle. Since the claim petition was
filed under...R.K.GAUBA, J (ORAL): 1. By judgment dated 02.12.2010, the
 motoaccident claims tribunal (tribunal) decided the motor accident claims petition
no.210A/10 awarding..

CONCLUSION:

19
The right to claim damages in case of death was recognized as early as in the year 1846 under
the common law. It was in the year 1846 that Fatal Accidents was introduced in England for the
first time. Law further developed and Fatal Accidents Act, 1855 got introduced in India.
Thereafter Motor Vehicles Act, 1939 was enacted to specifically deal with accidents arising out
from Motor Vehicle. Further thereafter, Motor Vehicles Act, 1988 was enacted to consolidate
and amend the law relating to accidents arising out of Motor Vehicles.

There has been quite a few amendments in the Act of 1988 in the year 1994, 2000 etc. to make
its object and scope wider and to deal with all eventualities arising therefrom.

A bill has been introduced by the Ministry proposing stringent punishment for traffic offences
such as drunken driving and an accident in which a child is killed. Fines have also been proposed
to the enhanced manifold in order to curb the menace of traffic violation leading to accidents.

Section 144 & Section 166 have played a great role in granting compensation for the victims of
Motor Vehicle accidents

Section 144 provides for no mistake compensation.

Section 166 provides a huge amount to the victim if the accident took place not due to the
mistake of the victim. The calculation is perfectly apt and addresses the demand for support by
the family of the victim of the accident.
 BIBLIOGRAPHY
1
Indiankanoon.org. 2021. Section 166(1) in The Motor Vehicles Act, 1988. [online] Available at:
<https://indiankanoon.org/doc/38282554/> [Accessed 30 January 2021].

2
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20140%20of%20MV%20Act%20is%20to%20pay%20compensation,shall%20be%20fixed%20at%20Rs.>
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3 Supremecourtcases.com. 2021.

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4
Vakilno1.com. 2021. Motor Vehicles Accident Compensation under the MV Act. [online] Available at:
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[Accessed 30 January 2021].

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[Accessed 30 January 2021].

6
Casemine.com. 2021. United India Insurance Co. Ltd. v. Sunil Kumar & Ors. S | Delhi High Court |
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<https://www.casemine.com/judgement/in/5a102970ce686e533f046c73> [Accessed 30 January 2021].

7
Casemine.com. 2021. Smt.Vineeta Sharma v. Brajesh Kumar Yadav | Madhya Pradesh High Court |
Judgment | Law | CaseMine. [online] Available at:
<https://www.casemine.com/judgement/in/572915d1e5610928928e7d33> [Accessed 30 January 2021].

8
Casemine.com. 2021. JAI RAM v. PREM SAGAR | Punjab & Haryana High Court | Judgment | Law
CaseMine. [online] Available at: <https://www.casemine.com/judgement/in/5cffedf5714d58231d231d4b>
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