Page 81 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

The right to claim compensation under section 140 Motor
Vehicles Act, 1988 in respect of death of or 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.

However, a person making a NFL claim under section
140 of the M V Act is not entitled for a claim under
section 163-A, but under section 166 of the Motors
Vehicles Act, 1988

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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