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GUNASSOCIATES -ELURU GADILLI UGRA NARASIMHA RAO Legal Pronouncements for Compensation under Section 166 of the Motor Vehicles Act, 1988
Motor accidents are a fairly commonplace occurrence in our daily lives. Motor accidents occur very frequently and lead to considerable loss of life and property. To cover such accidents and make provisions for them, a legislative mechanism namely the Motor Vehicles Act 1988(hereinafter referred to as the ‘Act’) has been instituted. The parties thus involved in a typical motor accident case requiring judicial dispensation include the owner of the vehicle, the driver the insurers and the deceased/injured. In this article, it has been attempted to delineate the principles for award of compensation by the Court in respect to claims arising out of motor vehicle accidents causing death or injury(Section 166 of the Act). Some of the major provisions under the Act pertaining to the above are dealt with as below; Legal Provisions Section 140 of the Act augurs for interim compensation on no fault basis(without proving negligence by the claimant on account of the owner of the vehicle concerned) vis a vis Section 166 of the Act is for the final adjudication of the claim. Section 165of the Act stipulates adjudicating upon claims for compensation in respect of accidents involving the death of, or bodily injury to, persons arising out of the use of motor vehicles, or damages to any property of a third party so arising, or both.
Section 166 of the Act states as to who can claim compensation in MACT cases with regard to Section 165 on the basis of evidence led. This would be by; (a) By the person sustaining the injury. (b) By the owner of the property where death has resulted from the motor accident. (c) By all or any of the legal representatives of the deceased. (d) By any agent duly authorized by the person injured or all or any of the legal representatives of the deceased as the case may be. Section 2(30) of the Motor Vehicles Act defines who the owner is “Owner thus is a person in whose name the motor vehicle stands registered and where such a person is a minor, the guardian of such minor. In relation to a Motor Vehicle which is the subject matter of a hire purchase agreement or an agreement of lease or an agreement of hypothecation, the person in possession of the vehicle under that agreement. A claim under Section 163-A of the Act can be also filed wherein compensation is granted by the Courts on the structured formula basis as provided under Schedule II of the Act . However the Honble Apex Court has adjudged the Schedule to have glaring mistakes.
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