no-fault liability - The Legal Chamber

The Supreme Court held that under Section 163A of the Motor Vehicles Act, 1988, proof of negligence is not required for claiming compensation, as the provision operates on a structured formula basis. The Court emphasized that compensation must be computed as per the Second Schedule of the Act, excluding non-scheduled heads like loss of love and affection. It ruled that the deceased, being a third party to the offending vehicle, entitled the claimants to compensation, payable jointly and severally by the insurer of the offending vehicle. The judgment clarified that Section 163A has an overriding effect over other provisions of the Act, ensuring expedited compensation without fault liability adjudication. Facts Of The Case: On the night of November 15, 2006, Surender Singh was driving a tr...

The Supreme Court upheld the High Court's decision denying enhanced compensation to the married daughter (Appellant No. 1) under the Motor Vehicles Act, 1988, as she failed to prove financial dependency on the deceased. However, it reversed the dismissal of the mother’s (Appellant No. 2) claim, awarding her ₹19.22 lakhs, recognizing her dependency and applying principles from Pranay Sethi and Sarla Verma for just compensation. The ruling clarified that legal heirs must establish dependency for loss-of-income claims, except under Section 140’s no-fault liability. Facts Of The Case: On January 26, 2008, Smt. Paras Sharma died in a road accident when a Rajasthan Roadways bus, negligently taking a sudden right turn, crushed her two-wheeler. Her married daughter (Appellant No. 1) and elderly ...

Tag: no-fault liability

Supreme Court Clarifies Compensation Rules Under MV Act: Insurer Liable Despite Negligence Claims

Supreme Court Clarifies Dependency Rights in Accident Claims: Key Takeaways on Legal Heirs & Dependency