Page 79 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

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.

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.

In India, The concept of NFL for providing interim
compensation on 'No Fault' basis have been introduced
by inserting chapter VII-A with Section 92-A to 92-E
into Motor Vehicles Act, 1939 providing compensation
of Rs. 25,000/- for death and Rs. 12,500/- for permanent
disablement based on the principle of no-fault liability,
by Act 47 of 1982 w.e.f 01/10/1982.

The amount of compensation subsequently increased
to Rs. 50,000/- and Rs.25,000/- for death and Permanent
disablement respectively, which was subsequently,
increased to Rs.50,000/- and Rs.25,000/- respectively
by Motor Vehicle Act, 1988 w.e.f.01/07/1989.

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

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