Page 64 - Motor Insurance Ebook IC 72

The Insurance Times

The object behind no-fault principle is to give minimum
statutory relief expeditiously to the victim of the road
accident or his legal representative. To that extent, these
provisions constitute a measure of social justice.

Chapter-X, consisting of section 140 to 144 of the Motor
Vehicles Act, 1988 deals with the liability without fault.
Section 140 of the Motor Vehicles Act, 1988 provides
for payment of compensation by the insured of the
vehicle based on the principles of NFL for death or
permanent disablement resulted from an accident arising
out of the use of motor vehicle.

In such a case, the claimants, need not to prove wrongful
act, neglect, or default on the part of the owner of the
vehicle or by any other person. At the same time the
claim for compensation shall not be defeated for his
own negligence. It is similar to 'strict liability'

The amount of compensation payable under this provision
was limited to Rs. 50,000/- in case of death and
Rs.25,000/- in case of permanent disablement.

However, the right of the victim or legal hair as the
case may be, to claim actual compensation based on
the principle of fault, is not affected. In case the claimant
becomes entitled for more compensation then what they

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