Motor Vehicles Act | Victim Need Not Prove Negligence Of Offending Driver To Claim Compensation U/S 163A: Punjab & Haryana High Court

The Punjab & Haryana High Court has made it clear that negligence of the driver of the offending vehicle need not be proved under Section 163-A of the Motor Vehicle Act, to claim compensation.As per Section 163-A, notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorised 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.The sub clause (2) adds that In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act or neglect or default of the owner of the vehicle or vehicles concerned or of any other person.Justice Sureshwar Thakur and Justice Kirti Singh said, "In terms of sub Section 2 of Section 163-A of the Act of 1988, thus the determination of fault or determination of tort of negligence, rather is not required, whereupons in a petition cast under Section 163-A of the Act of 1988, rather no determination(s) of fault nor any determination of compensation in terms of the ensuing principles as arise from apposite fault determinations being made, thus becomes enjoined to be so made."The Court also explained that the liability is fastened on the owner of the offending vehicle only on the ground that he was the "user" at the relevant time.These observations were made while hearing a reference plea, wherein the Court decided a batch of petitions filed by the United India Insurance Co. Ltd. challenging the award of the Tribunal.The pleas were based on a common FIR in 2013 wherein a road accident was allegedly caused by a tractor left parked in the middle of a road without warning signs.Perusing the impugned award, the Court found that it was granted under Section 163-A f the Act.The Court observed that although fault is not required to be determined but "yet the quantification of compensation thereunders, thus becomes respectively pegged in a sum of Rs.50,000/- in case of death, whereas, in respect of permanent disablement becoming entailed upon the claimant, the quantum of compensation has been pegged in a sum of Rs.25,000."It added that, "petition filed under Section 163-A of the Act of 1988, the compensation to be determined thereunders, is to be on the basis of structured formula, which is envisaged in the second schedule appended to the Act of 1988, schedule."While acknowledging that the provision has been amended in 2019, the Court said that it will not be of relevance because the incident occurred in 2013.The bench also said that the medical expenses could not be challenged if they were proved by valid medical bills and documentary evidence. Consequently, the Court held that, "the insurance company cannot challenge the award, despite the same for reasons (supra), thus becoming well based, upon the unrebutted documentary evidence, suggestive the incurrings of actual medical expenses, by the claimants in theirs respectively securing alleviating treatment."Title: United India Insurance Co. Ltd v. Gurjinder Kaur and others [along with other petitions]Mr.SuvirDewan,Advocate for the appellant-Insurance company(in FAO Nos. 5311, 5313 and 5314 of 2015) and for respondent No. 3-Insurance Company (in FAO No. 6079-2015).Mr. Sahil S. Chauhan, Advocate for respondent No. 1 (in FAO Nos. 5311, 5313 and 5314 of 2015) and for the appellant (in FAO No. 6079-2015).Click here to read/download the order

Motor Vehicles Act | Victim Need Not Prove Negligence Of Offending Driver To Claim Compensation U/S 163A: Punjab & Haryana High Court

Aiman J. Chishti

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