Page 80 - Motor Insurance Ebook IC 72

The Insurance Times

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 the negligence committed by the
victim himself. To that extent it is similar to 'strict
liability'

Though 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, but
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 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.

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