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This is bit confusing for the reason that while S. 227 of the S. 168 M V Act, 1988 provides that, "in the case of
Draft Bill, 2015 limits the Maximum liability of insurer at
Rs. 15 lakh S. 244 provides for minimum compensation of death, the amount of compensation, excluding
Rs. 20 lakh. Moreover, it is a settled law that the award compensation for loss of earnings and for medical expenses
under S. 163-A M V Act, 1988 corresponding to S. 227 of prior to death, shall be an amount as may be prescribed by
the Draft Bill, 2015 is a full and final one and no more claim rules made by the Central Government."
subsists thereafter in this regard subject to adjustment.
Reintroduction of similar proviso even after the same was 8-6-2- Analysis- As per S. 168 of M V Act, 1988 -
settled down by the Apex Court is not understood.
Compensation under various conventional heads other than
8-5- Ss. 248 Draft Bill, 2015 corresponding to S.166 loss of earning and medical expenses involving injury was
M V Act, 1988 - Application for compensation. decided by the Tribunal. Whereas under Ss. 250(1) Draft Bill,
2015 the same shall be fixed prescribed by rules made by
the Central Government."
With the deletion of Ss. 166 (3) M V Act, 1988 there was 8-7- S. 252 Draft Bill, 2015-Judgment and award
no limitation for filing application for compensation under of compensation - “This is a new provision which
the Act. However, Ss. 248(11) of the Draft Bill, 2015
corresponding to the above proviso of M V Act, 1988 provides that "the compensation awarded for death, injury
now provides "Provided further that no application or disability arising out of a motor vehicle crash shall be as
for compensation under this Act shall be entertained per the scheme notified from time to time by the Central
unless it is made within one year of the occurrence of the Government after consultation with the National
crash." Authority."
Apart from the above it further provides a period of six 8-7-1- Analysis - From the above, it appears that the
months for filing fresh claim in case the claim was disposed
off by the Tribunal based on police report. award of compensation for death, injury or disability arising
out of a motor vehicle crash shall be as per the scheme
From the above it is apparent that the limitation for filing notified from time to time by the Central Government after
a claim under normal circumstances was fixed at 1 year consultation with the National Authority. However, the same
whereas, the same will be 6 months from the date of is not clear as whether the scheme will be in addition to
disposal by the Tribunal for claims arisen out of Detailed payment of compensation u/s 227 and 244 of the Draft Bill,
Crash Information Report. 2015 or claims arising out of the same.
8-6- S. 250 (1) Draft Bill, 2015 corresponding to 8-8- S. 253 Draft Bill, 2015- Settlement of claims
S. 168 M V Act, 1988 - Award of Claims Tribunal outside of Claims Tribunal - This is a new provision
8-6-1-Ss. 250(1) Draft Bill, 2015 Corresponding to which provides for assent of the Investigation Officer to
ensure that the same is not done under pressure in case of
settlement between parties outside of Claims Tribunal.
8-9- S. 254 Draft Bill, 2015 - Enforcement of award
of the Claim Tribunal - This is also a new provisions
which provides for recovery by the Tribunal by way of
directing the Bank of Insurer to deposit the cheque for the
like amount unless the award paid within 90 days.
Disbursement of the cheque by Tribunal in this regard to
be made within 6 weeks. If the disbursement cannot be
effected by the Tribunal with in 3 months, the same may
be returned to insurer against fresh cheque. If the direction
The Insurance Times, September 2015 39
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