Motor Vehicles Act, 1988 - CHAPTER IX INSURANCE OF MOTOR VEHICLES AGAINST THIRD PARTY RISKS - section 163, section 163 A and section 163 B

CHAPTER IX

INSURANCE OF MOTOR VEHICLES AGAINST THIRD PARTY RISKS
sections 163, section 163 A  and section 163 B

163. Scheme for payment of compensation in case of hit and run motor accidents, - (1) The Central Government may by notification in the official gazette, make a scheme specifying the manner in which the scheme shall be administered by the Central Insurance Corporation, the form, the manner and the time within which the application for compensation may be made, the offices or authorities to whom such applications may be made, the procedure to be followed by such officers or authorities for considering and passing orders on such applications, and all other matters connected  with, or incidental to, the administration of the scheme, and the payment of compensation.

  (2)  A scheme made under sub-section (1) may provide that-

(a)    a contravention of any provision thereof shall be punishable with imprisonment for such term as may be specified but in no case exceeding three months, or with fine which may extent to such amount as may be specified but in no case exceeding five hundred rupees or with both;

(b)   the powers, functions and duties conferred or imposed on any officer or authority by such scheme may not be delegated with the prior approval in writing of the Central Government, by such officer or authority or any other officer or authority.

(c)    any provision of such scheme may operate with retrospective effect from a date not earlier than the date of establishment of the scheme

Provided that no such retrospective effect shall be given so as to prejudicially affect the interest on any person who may be governed by such provision.

163-A.  Special provision as to payment of compensation on structured formula basis, - (1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of a motor vehicle or the authorized insurer shall be liable to pay in the case of death or permanent disablement due to accident arising out of the use of the motor vehicle, compensation as indicated in the Second Schedule, to the legal heirs or the victim, as the case may be.

Explanation:-  For the purpose of this sub-section, “permanent disability” shall have the same meaning and extent as in  the Workmen’s Compensation Act, 1923.

  (2) In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act or neglect or default of the owner of the vehicle concerned or of any other person.

  (3) the Central Government may, keeping in view the cost of living by notification in the Official Gazette, from time to time amend the Second Schedule.

163-B. Option to file claims in certain cases, - Where a person is entitled to claim compensation under section 140 and section 163 A, he shall file the claim under either of the said sections and not under both.

142. Power of Central Government to make rules, - (1) The Central Government may make rules for the purpose of carrying into effect the provisions of this Chapter, other than the matters specified in section 159.

 (2) the forms to be used for the purpose of this Chapter,

 (3) the making of application for  and the issue of certificate of insurance.,

 (4) the issue of duplicate to replace certificates of insurance lost, destroyed or mutilated,

 (5) the custody, production, cancellation and surrender of certificate of insurance,

 (6) the records to be maintained by the insurers of policies of insurance issued under this Chapter,

 (7) the identification by certificate or otherwise of persons or vehicles exempted from the provisions of

       this Chapter,

(8) the furnishing information respecting policies insurance by insurers.

(9) adopting the provisions of this Chapter to vehicles brought into India by persons making only a

      temporary stay therein or to vehicles registered in reciprocating country and operating on any such

      route or within any area in India by applying those provisions  with prescribed modifications.

(10) the form in which and the time limit within which the particulars referred to in section 160 may be

       furnished; and

(11) any other matter which is to be, or may be , prescribed.