Page 63 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

For transfer of the insurance policy covering own
damage section requires the purchaser to make an
application to the insurer within a period of 14 days and
its acceptance by the insurance company.

Q12. What is "No Fault Liability". Whether insurer is
Ans: liable to pay compensation without Fault" to third
party?
Payment of compensation to motor vehicle victims was
based on the law of tort, governed by the 'principles of
fault'. Accordingly, the victims to prove fault on the part
of the person in causing the personal injury or death
against whom the claim for compensation was made.

However, the principle of "No Fault Liability" i.e. NFL,
also known as 'Liability without Fault" is an exception
to the principle of fault, where the victims is entitled for
compensation notwithstanding whether or not the same
is caused by the fault of the person against whom the
claim for compensation was made.

This is a departure from the usual common law principle
that a claimant should establish negligence on the part
of the owner or driver of the motor vehicle before
claiming any compensation for death or permanent
disablement arising out of a motor vehicle accident.

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