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Apart from the above, insurer is not liable under NFL,
if it is not ultimately liable. Some of the High Courts are
of the view that even the insurer has right to defend a
claim under NFL, except on the ground of negligence.

For example, in case of a claim arisen out of the use of
a motor vehicle for a purpose not permitted by the permit
and in contravention to the Act, the insurer have a right
to defend since the same is a breach of policy terms
and condition vis-a-vis provisions of Motor Vehicles Act
and have nothing to do with the negligence aspect of
the claim.

Though, the award under NFL appears to be an interim
award, legally it is an award and appealable.

Q13. What is the special provision relating to payment
Ans. of compensation on structured formula ?
Many a time it was not possible for the claimant to pursue
to long drawn litigation to prove fault on the part of the
offending vehicle to receive compensation except for
claims based on NFL under section 140 of the Motor
Vehicles Act, 1988.

With a view to protect such victims a new provision u/s
163-A "Special provision as to payment of compensation
on structured formula basis" was inserted into the MV

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