Page 65 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

have received under NFL, the same is to be deducted.
But in case the actual compensation works out to be
less than what is provided under NFL then the claimant
can retain the same and need not to refund the
difference.

The right to claim compensation under section 140 Motor
Vehicles Act, 1988 in respect of death of permanent
disablement of any person shall be in addition to any
other right to claim compensation in respect thereof
under any other provision of this Act or of any other
law for the time being in force.

For the purpose of claim under NFL the claimant or the
legal heir need to prove, that he sustained permanent
disablement, or death by an accident arising out of the
use of motor vehicle duly insured at the material time of
accident and the victim was covered as per the Act.

It may be noted here that NFL does not mean that a
person becomes entitled for compensation even if he is
not required to be covered under section 147 (2) of the
Motor Vehicles Act, 1988. For example pillion rider of a
two wheeler or occupants of private car, insured under
liability only policy is not entitled for compensation under
NFL, because they are not required to be covered under
the Act.

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