Page 11 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

death cases.
2. Increase in amount of compensation under no-fault

liability for death and permanent disablement from
Rs. 25,000/- and 12,500/- to Rs. 50,000/- and Rs.
25,000/- respectively.

Further changes effected in the Motor Vehicles Act
1988 from time to time. Important changes from
insurance point of view are as under:
1. Inclusion of "owner of goods or his authorised

representatives carried in the vehicle" in Section 147
of the Motor Vehicles act, 1988 by Act 54 of 1994,
with effective from 14/11/1994.
2. Insertion of Section 163-A & 163-B "Special provision
as to payment of compensation on structured formula
basis" in the Motor Vehicles Act, 1988 by Act 54 of
1994, with effective from 14/11/1994.

Recently, in the month of May, 2012, the Ministry of
Surface Transport get the Motor Vehicle (Amendment)
Bill, 2007 passed in the Rajya Sabha in a voice vote,
which is now pending before the Lok Sabha.

The said bill proposes to bring out some radical changes
in the existing law relating to motor third party insurance
including hike in the compensation keeping in view high
inflation rate.

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