145. Definitions,- In this
Chapter,-
(a) authorised insurer” means as insurer for the time being carrying on general insurance
business In India under the General Insurance Business (Nationalization) Act,
1972( 57 of 1972), and any Government insurance fund authorised to do general
insurance business under this Act;
(b) certificate of insurance” means a certificate issued
by an authorised insurer in pursuance of sub-section (3) of section 147 and
includes a cover note complying with such requirements as may be prescribed,
and where more than one certificate has been issued in connection with a
policy, or where a copy of a certificate has been issued, all those
certificates or that copy, as the case may be;
© “liability” wherever used in
relation to the death of or a bodily injury to any person, includes liability
in respect thereof under section 140;
(d) “policy of insurance”
includes “certificate of insurance”;
(e) “property” includes goods
carried in the motor vehicle, , bridges, culverts, causeways, trees, post, and
milestones;
(f) “reciprocating country”
means any such country as may on the basis of reciprocity by the Central
Government in the Official Gazette to be a reciprocating country for the
purpose of this Chapter;
(g) “third party” includes the
Government;
146. Necessity for insurance
against third party risks, - (1) No person shall use, except as a passenger,
or cause or allow any other person to use, a motor vehicle in a public place,
unless there is in force in relation to the use of the vehicle by that person
or that other person, as the case may be, a policy of insurance complying with
the requirements of this Chapter.
Provided that in
the case of a motor vehicle carrying, or meant to carry, dangerous or hazardous
goods, there shall also be a policy of insurance under the Public Liability
Insurance Act, 1991.
Explanation: - A
person driving a motor vehicle merely as a paid employee, while there is in
force in relation to the use of the vehicle no such policy as is required by
this sub-section, shall be deemed to act in contravention of the sub-section
unless he knows or has reason to believe that there is no such policy in force.
(2) Sub-section (1) shall not apply to any
vehicle owned by the Central Government or a State Government and used for the Government
purposes unconnected with any commercial enterprise.
(3) The appropriate Government may, by order,
exempt from the operation of sub-section (1) any vehicle owned by any of the
following authorities namely,-
(a) the
Central Government or a State Government, if the vehicle is used for Government
purposes unconnected with any commercial enterprise.
(b) any
local authority;
© any State
transport undertaking.
Provided that
no such order shall be made in relation to any such authority unless a fund has
been established and is maintained by that authority in accordance with the
rules made in that behalf under this Act for meeting any liability arising out
of the use of any vehicle of that authority which that authority or any person
in its employment may incur to third parties.
Explanation:- For the purpose of
this sub-section ”appropriate Government”
means the Central Government or
any State Government, as the case may be, and,-
(i) in
relation to any corporation or company owned by the Central Government or that
State
Government;
(ii) in
relation to any corporation on company owned by the Central Government and one
or
more State Governments, means
the Central Government;
(iii) in
relation to any other State transport undertaking or any local authority, means
the
Government which has control
over that undertaking or authority.
147. Requirements of policies and limits of
liabilities, - (1) In order to comply with the requirements of this
chapter, a policy of insurance must be a policy which-
(a) is
issued by a person who is an authorised insurer; and
(b) insures the person or classes of persons
specified in the policy to the extent specified in sub-
section (2),-
(i)
against any liability which may be incurred by him in respect of the death
of or bodily
injury to any person, including owner of
the goods or his authorised representative
carried in the vehicle or damages to any property of a third party
caused by or arising
out of the vehicle in a public place;
(ii) against the death or
bodily injury to any passenger of a public service vehicle caused
by or arising out of the use of the
vehicle in a public place;
Provided that a policy shall
not be required-
(i) to cover liability in respect of the
death, arising out of and in the course of his
employment, of the employee of a person
insured by the policy or in respect of bodily
injury submitted by such an employee
arising out of and in the course of his
employment other than a liability
arising under the Workman’s Compensation Act,
1923 ( 8 of 1923), in respect of the
death of, or bodily injury to, any such employee-
(a) engaged in driving the
vehicle, or
(b) if it is a public service
vehicle engaged as a conductor of the vehicle or in
examining tickets on the
vehicle, or
©
to cover any contractual liability.
Explanation:- For the
removal of doubts, it is hereby declared that the death of or bodily injury to
any person or damage to any property of a third party shall be deemed to have
been caused or to have arisen out of, the use of the vehicle in a public place
notwithstanding that the person who is dead or injured or the property which is
damaged was not in public place at the time of the accident, if the act or
omission which lead to the accident
occurred in a public place.
(2) Subject to the proviso to
sub-section (1), a policy of insurance
referred to in sub-section (1), shall
cover any liability incurred in
respect of any accident, upon the following limits, namely,-
(a) save as
provided in clause (b), the amount of liability incurred;
(b) in respect
of any damage to any property of a third party, a limit of rupees six thousand:
Provided
that any policy of insurance issued with any limited liability and in force,
immediately before the commencement of this Act, shall continue to be effective
for a period of four months after such commencement or till the date of expiry
of such policy whichever is earlier.
(3) A policy shall be of no effect for the
purpose of this Chapter, unless and until there is issued by
the insurer in favour of the
persons by whom the policy is effected a certificate of insurance in the
prescribed form and containing the prescribed particulars of any condition subject to which the policy
is issued and of any other prescribed matters, and different forms, particulars
and matters may be prescribed in different cases.
(4)
Where a cover note is issued by the insurer under the provisions of this
Chapter or the rules made thereunder is not followed by a policy of insurance
within the prescribed time, the insurer shall, within seven days of the expiry
of the period of validity of the cover note, notify the fact to the registering
authority in whose records the vehicle to which the cover note relates has been
registered or to such other authority as the State Government may prescribe.
(5) Notwithstanding anything contained in any law
for the time being in force, an insurer issuing a policy of insurance under
this section shall be liable to indemnify the person or classes of persons
specified in the policy in respect of any liability which the policy purports
to cover in the case of that person or those classes of persons.
148. Validity of policies of insurance issued
in reciprocating countries,- Where,
in pursuance of an arrangement between India and any reciprocating country, any
motor vehicles registered in the reciprocating country operated on any route or
within any area common to the two
countries and there is in force in relation to the use of the vehicle in the
reciprocating country a policy of
insurance complying with the requirements of the law of insurance in force in
that country, then, notwithstanding anything contained in section 147 but
subject to any rules which may be made
under section 164, such policy of insurance has been made as if the policy of
insurance had complied with the requirements of this Chapter.
149. Duty of insurers to satisfy judgments and
awards against persons insured in respect of third party risks,- (1)
If, after a certificate of
insurance has been issued under sub-section (3) of section 147 in favour of any
person by whom a policy has been effected, judgment or award in respect of any such liability as is required
to be covered by a policy under sub clause
(b) of sub-section (1) of section 147 (being a liability covered by the
terms of the policy)[ or under the
provisions of section 163 A ] is obtained against any person insured by the
policy, then, notwithstanding that the insurer may be entitled to avoid or
cancel or may have avoided or cancelled the policy, the insurer shall, subject
to the provisions of this section, pay to the person entitled to the benefit of
the decree any sum not exceeding sum insured payable thereunder, as if he were
the judgment debtor, in respect of the liability , together with any payable in
respect of costs and any sum payable in respect of interest on that sum by
virtue of any enactment relating to the interest of judgments.
(2)
No sum shall be payable by any insurer under sub-section (1) in respect
of any judgment or award unless, before the commencement of the proceedings in
which the judgment is awarded is given the insurer had notice through the Court
or, as the case may be, through the Claims Tribunal of the bringing of the
proceedings, or in respect of such judgment or award so long as execution is
stayed thereon pending an appeal; and an insurer to whom notice of the bringing
of any such proceedings is so given shall be entitled to be made a party
thereto and to defend the action on any of the following grounds, namely,-
(a) that there has been a breach of a
specified condition of the policy, being one of the following
conditions
namely,-
(i) condition excluding the case of the vehicle –
(a) for hire or reward, where the vehicle is on
the date of the contract of
insurance a
vehicle is not covered by a permit to ply for hire or reward, or
(b) for organized racing or speed testing, or
© for a purpose not allowed by the holder which
the vehicle is used, where
the vehicle is a
transport vehicle, or
(d) without side car being attached where the
vehicle is a motor cycle, or
(ii) a condition excluding driving by a named
person or persons or any person who is
not duly licensed, or by
any person who has been disqualified for holding or
obtaining a driving
license during the period of disqualification; or
(iii) a condition excluding liability for injury caused or contributed by
conditions of war, civil
war,
riot or civil commotions; or
(b) that the policy is void on the ground that it
was obtained by the non-disclosure of material fact
or by
a representation of fact which was false in some material particular.
(3)
Where any such judgment as is referred to in sub-section (1) is obtained
from a Court in reciprocating country and in the case of a foreign judgment is,
by virtue of the provisions of section 13 of
Code of Civil Procedure, 1908(5 of 1908) conclusive as to any matter
adjudicated upon by it, the insurer (being an insurer registered under the
Insurance Act, 1938 ( 4 of 1938 ) and whether or not he is registered under the
corresponding law of the reciprocating country) shall be liable to the person
entitled to the benefit of the decree in the manner to the extent specified in
sub-section (1), as if the judgment were given by a Court in India:
Provided that no sum shall be payable by the
insurer in respect of any such judgment unless,
before the commencement of the proceedings in
which the judgment is given, the insurer had notice through the Court concerned
of bringing of the proceedings and the insurer to whom notice is so given is
entitled under the corresponding law of the reciprocating country, to be made a
party to the proceedings and to defend the section on grounds similar to those
specified in sub-section (2)
(4)
Where a certificate of insurance has been issued under sub-section (3)
of section 147 to the person by whom a policy has been effected, so much of the
policy as purports to restrict the insurance of the persons insured thereby reference
to any conditions other than those in clause (b) of sub-section (2) shall, as
respects such liabilities as required to be covered by a policy by virtue, only
of this sub-section shall be entitled to recover the excess form that person.
(5) If the amount which an insurer becomes
liable under section to pay in respect of a liability incurred by a person
insured by a policy exceeds the amount for which the insurer would apart from
the provisions of this section be liable under the policy in respect of that
liability, the insurer shall be entitled to recover the excess form that person
(6) In
this section the expressions “material fact” and “material particular” means,
respectively a fact or particular of such a nature as to influence the judgment
of a prudent insurer in determining whether he shall take the risk and if so, at what premium and on what
conditions, and the expression “liability covered by the terms of the policy “
means a liability which is covered by the policy or which would be so covered
but for the fact that the insurer is entitled to avoid or cancel or had avoided
or cancelled the policy.
(7) No insurer to whom the
notice referred to in sub-section (2) on sub-section (3) has been given shall
be entitled to avoid his liability to any person entitled to the benefit of any
such judgment as is referred to in sub-section (3) otherwise than in the manner
provided for in sub-section (2) or in the corresponding law of the
reciprocating country, as he case may be.
Explanation:- For the purpose
of this section, “Claims Tribunal” means a Claims Tribunal constituted under
section 165 and “award” means an award made by that Tribunal under section168.
150. Rights of third parties
against the insurers on insolvency of the insured,- (1) Where under any contract of the insurance
effected in accordance with the provisions of this Chapter, a person insured
against liabilities which he may incur to third parties, then-
(a) in the event of the person becoming
insolvent or making a composition or arrangement
with his creditors, or
(b) where the insured person is a
company, in the event of a winding up order being made or a
resolution for a voluntary winding up
being passed with respect to the company’s business or
undertaking being duly appointed, or of
possession being taken by or on behalf of the holders of
any debentures secured by any floating
charge of any property comprised in or subject to the
charge.
If, either before or after that event, any
such liability is incurred by the insured person, his rights against the
insurer under the contract in respect of the liability shall, not withstanding anything
to the contrary in any provision of law,
be transferred to and vest in the third
party to whom the liability was so incurred
(2) Where an order for the
administration of the estate of a deceased debtor is made according to the law
of insolvency, then, if any debt provable in insolvency is owning by the
deceased in respect of a liability to a third party against which he was
insured under a contract of insurance in accordance with the provisions of this
Chapter, the deceased debtor’s rights against the insurer in respect of that
liability shall, notwithstanding anything to the contrary in any provisions of
law, be transferred to and vest in the person whom the debt is owing.
(3) Any condition in a policy issued for the
purpose of this Chapter purporting either directly or indirectly to avoid the
policy or to alter the rights of the parties thereunder upon the happening to
the insured person of any of the events specified in clause (a) or clause (b)
of sub-section (1) or upon the making of an order for the administration of the
estate of a deceased debtor according to the law of insolvency shall be of no
effect.
(4)
Upon a transfer under sub-section (1) or sub-section (2), the insurer
shall be under the same liability to the third party as he would have been to
the insured person, but,
(a) if the liability of the
insurer to the insured person exceeds the liability of the insured person to
the
third part, nothing in
this Chapter shall affect the rights of the insured person against the insurer
in respect of the excess, and
(b) if the liability of the
person is less than the liability of the insured person to the third party,
nothing in this Chapter shall affect the rights of the third party against the
insured person in respect of the balance.
151. Duty to give information as
to insurance,- (1) No
person against whom a claim is made in respect of any liability referred to in
clause (b) of sub-section (1) of section 147 shall on demand by or on behalf of
the person making the claim refuse to state whether or not he was insured in
respect of that liability by any policy issued under the provisions of this Chapter, or would have been so insured
if the insurer had not avoided or cancelled the policy, nor shall he refuse, if
he was or would have been so insured, to give such particulars with respect to
that policy as were specified in the certificate of insurance issued in respect
thereof.
(2) In
the event of any person becoming insolvent or making a composition or
arrangement with his creditors or in the event of an order being made for the
administration of the estate of a deceased person according to the law of
insolvency, or in the event of a winding up order being made or a resolution
for a voluntary winding up being passed with respect to any company or a
receiver or manager of the company’s business or undertaking being duly
appointed or of possession being taken
by or on behalf of the holders of any debentures secured by a floating charge
on any property comprised in or subject to the charge, it shall be the duty of
the insolvent debtor, personal representative of the deceased debtor or
company, as the case may be, of the official assignee or receiver in insolvency,
trustee, liquidator, receiver or manager or person in charge of the property to
five at the request of any person claiming that the insolvent debtor, deceased
debtor or company is under such liability to him as is covered by the provisions of this Chapter, such information as may be
reasonably required by him for the purpose of assigning whether any rights have
been transferred to and vested in him by section 150, and for the purpose of
enforcing such rights, if any, and any such contract of insurance as purports
whether directly or indirectly to avoid the contract or to alter the rights of
the parties thereunder upon the giving
of such information in the events aforesaid, or otherwise to prohibit or
prevent the giving thereof in the said events, shall be of no effect.
(3) If, from the information given to any person
in pursuance of sub-section (2) or otherwise, he has reasonable ground for
supporting that there have or may have been transferred to him under this Chapter
rights against any particular insurer, that insurer shall be subject to the
same duty as is imposed by the said sub-section on the persons therein
mentioned.
(4) The duty to give the
information imposed by this section shall include a duty to allow all contracts
of insurance, receipts for premiums, and other relevant documents in possession
or power or the person on whom the duty is so imposed to be inspected and
copies thereof to be taken.
152. Settlement between insurers
and insured persons,- (1) No
settlement made by an insurer in respect of any claim which might be made by a
third party in respect of any liability of
the nature referred to in clause (b) of sub-section (1) of section 147
shall be valid unless such third party is a party to the settlement.
(2) Where a person who is insured under
a policy issued for the purposes of this Chapter gas become insolvent, or
where, if such insured person is a company, a winding up order has been made or
a resolution for a voluntary winding up has been passes with respect to the
company, no agreement made between the insurer and the insured person after the
liability has been incurred t a third party and after the commencement of the insolvency
or winding up, as the case may be, nor
any waiver, assignment or other disposition made by or payment made to
the insured person after the commencement aforesaid shall be effective to
defeat the rights transferred to the third party under this Chapter, but those
rights shall be the same as if no such agreement, waiver, assignment or
disposition or payment has been made.
153.
Saving in respect of sections 150, 151 and 152,- (1) For the purpose of section 150, 151 and 152 a reference to “liabilities to third parties “ in relation
to a person insured under any policy of insurance shall not include a reference
to any liability of that person in the capacity of insurer under some other
plocy of insurance.
(2) The provisions of section 150, 151 and 152
shall not apply where a company is wound up voluntarily merely for the purpose
of reconstruction or of an amalgamation with another company.
154. Insolvency of insured
persons not to affect liability of insured of claims by third parties,- Where a certificate of insurance has been
issued to a person by whom a policy has been affected, the happening in
relation to any person insured by the policy of any such event as is mentioned
in sub-section (1) or sub-section (2) of section 150 shall, notwithstanding
anything contained in this Chapter, not affect any liability or that person of
the nature referred to in clause (b), of
sub-section (1) of section 147; but nothing in this section shall affect any
rights against the insurer conferred under the provisions of section 150, 150
and 152 on the person to whom the liability was incurred.
155. Effect of death on certain causes
of action,- Not
withstanding anything contained in section 306 of Indian Succession Act, 1925
(39 of 1925)m the death of a person in whose favour a certificate of insurance
had been issued, if I occurs after the happening on an event which has given
rise to a claim under the provisions of this Chapter, shall not be a bar to the
survival of ay cause of action arising out of the said event against his estate
or against the insurer.
156.
Effect of certificate of insurance,-
When an insurer has issued a certificate if insurance in respect of a
contract of insurance between insurer and insured person, then –
(a) if and so long as the policy described
in the certificate has not been issued by the insurer
to the insured, the
insurer shall, as between himself and any other person except the
insured person a policy
of insurance confirming in all respects with the description and
particulars stated in
such certificate; and
(b) if the insurer has issued to the insured
the policy described in the certificate,
but the
actual
terms of the policy are less favorable
to persons claiming under or by virtue of the
policy
as stated in the certificate, the policy
shall, as between the insurer and any other
person
except the insured, be deemed to be in terms conforming in al respects with the
particulars
stated in the said certificate.
157. Transfer of certificate of insurance,- (1) Where a person in whose favour the
certificate of insurance has been issued in accordance with the provisions of
this Chapter transfers to another person the ownership of the motor vehicle in
respect of which such insurance was taken together with the policy of insurance
relating thereto, the certificate of
insurance and the policy described in the certificate shall be deemed to have
been transferred in favour of the person to whom the motor vehicle is
transferred with effect from the date of its
transfer.
Explanation:- For the removal of doubts,
it is hereby declared that such deemed transfer shall include transfer of rights and liabilities of the said
certificate of insurance and policy of insurance.
(2) The transferee shall apply
within fourteen days from the date of transfer in the prescribed form to the
insurer for making necessary changes in regard to the fact of transfer in the
certificate of insurance and the policy described in the insurance in his
favour and the insurer shall make the necessary changes in the certificate and
the policy of insurance in regard to the transfer of insurance.
158. Production of certain certificates, license and
permit in certain cases,- (1) Any person driving a motor vehicle in any
place shall, on being so required b a police officer in uniform authorised in
this behalf by the State Government, produce,-
(a) the certificate of insurance;
(b) the certificate of registration;
© the
driving license; and
(d) in the case of a transport
vehicle, also the certificate of fitness relating to in section 56 and
the
Permit, relating to the use of the
vehicle.
(2) if,
where owing to the presence of a motor vehicle in a public place an accident
occurs involving death or bodily injury to another person, the driver of the
vehicle does not at the time produce the certificates, driving license and
permit referred to in sub-section (1) to a police officer, he shall produce the
said certificates, license and permit at the police station at which he make
the report required by section 134.
(3) No person shall be liable to conviction under
sub-section (1) or sub-section (2) by reason only of failure to produce the
certificate of insurance if, within seven days from the date on which its
production was required under sub-section (1), or as the case may be, from the
date of occurrence of the accident, he produces the certificate at such police
station as may have been specified by him to the police officer who required
its production or, as the case may be, to the police officer at the site of the
accident or to the officer in charge of the police station at which he reported
the accident.
Provided that except to
such extent and with such modification as may be prescribed, the provisions of
this sub-section shall not apply t the driver of a transport vehicle.
(4) The
owner of a motor vehicle shall give such information as he may be required by
or on behalf of a police officer empowered in this behalf by the State
Government to give for the purpose of determining whether the vehicle was not
being driven in contravention of section 146 and on any occasion when the
driver was required under this section to produce his certificate of insurance.
(5) In this section, the expression ” produce his
certificate of insurance” means produce for examination the relevant certificate
of insurance or such other evidence as may be prescribed that the vehicle was
not driven in contravention of section 146,
(6) As soon as any information regarding any
accident involving death or bodily injury to any person is recorded or a report under this section is completed by a
police officer, the officer in charge of the police station shall forward a
copy of the same within 30 days from the date of recording of information or,
as the case may be, on completion of such report to the Claims Tribunal having
jurisdiction and a copy thereof to the concerned insurer, and where a copy is
made available to the owner, he shall also within thirty days of receipt of
such report, forward the same to such Claims Tribunal and insurer.
159. Production of certificate of
insurance or application for authority to use the vehicle, - A State Government
may make rules requiring the owner of any motor vehicle when applying whether
by payment of tax or otherwise for authority to use the vehicle in a public
place to produce such evidence as may be prescribed by those rules to the effect
that either-
(a)
on the date when the authority to use the vehicle comes into operation
there will be in force the
necessary policy of insurance in relation to
the use of the vehicle by the applicant or by other
persons
on his order or with his permission; or
(b) the
vehicle is a vehicle to which section 146 does not apply.
160. Duty to produce vehicle involved in
accident, - A registering authority or the officer in
charge of a police station, if so required by a person who alleges that he is
entitled to claim compensation in respect of any accident arising out of the
use of a motor vehicle , or if so required by an insurer against whom a claim has been made in respect of any
motor vehicle, furnish to that person or to that insurer, as the case may be,
on payment of the prescribed fee any information at the disposal of the said
authority or the said police officer relating to the identification marks and
other particulars of the vehicle and the name and address of the person who was
using the vehicle at the time of the accident or was injured by it and the property, if any, damaged in such form and within such time as the Central
Government may prescribe.
161. Special provisions as to compensation in
case of hit and run motor accident, - (1)
For the purpose of this section, section 162 and section 163 –
(a)
“grievous hurt” shall have the
same meaning as Indian Penal Code, 1860 ( 45 of 1860);
(b)
“hit and run motor accident” means an accident arising out of the use of
a motor vehicle or
motor vehicles, the identity whereof cannot be
ascertained in spite of reasonable efforts for
the
purpose;
©
“scheme” means the scheme framed under section 163.
(2) Notwithstanding contained in the General Insurance Business (
Nationalisation) Act, 1972 ( 57 of 1972) or any other law for the time being in
force or any instrument having the force of law, the General Insurance
Corporation of India formed under section 9 of the said Act and the insurance
companies for the time being carrying on general insurance business in India
shall provide for paying in accordance with the provisions of this Act and the
scheme, compensation in respect of the death of, or grievous hurt to, persons
resulting from hit and run motor accidents.
(3) Subject to the provisions of
this Act and scheme, there shall be paid such compensation,-
(a) in
respect of the death of any person resulting from a hit and run motor accident,
a fixed
sum
of twenty thousand rupees;
(b) in
respect of a grievous hurt to any person resulting from a hit and run motor
accident, a
fixed
sum of twelve thousand and five hundred rupees;
(4) The provisions of sub-section
(1) of section 166 shall apply for the purpose of making application for
compensation under this section as they apply for the purpose of making
applications for compensation referred to in that sub-section.
162. Refund in some cases of
compensation paid under section 161, - (1)
The payment of compensation in respect of death of , or grievous hurt to, any person under section
161 shall be subject to the condition that if any compensation ( hereinafter in
this sub-section referred to as the other compensation) or other amount in lieu
of or by way of satisfaction of a claim for compensation is awarded or paid in
respect of such death of grievous hurt under any other provisions of this
Act or any other law or otherwise so much of the other compensation or other amount aforesaid as is equal to the compensation paid under section 161 shall be refunded to the insurer.
Act or any other law or otherwise so much of the other compensation or other amount aforesaid as is equal to the compensation paid under section 161 shall be refunded to the insurer.
(2)
Before awarding compensation in respect of an accident involving the death of,
or bodily injury to, any person arising out of the use of a motor vehicle or
motor vehicles under any provision of this Act ( otherwise than section 161 )
or any other law, the Tribunal, Court or other authority awarding such
compensation shall, verify as to whether in respect of such death or bodily
injury compensation has already been paid under section 161 or an application
for payment of compensation is pending under that section, and such Tribunal,
Court or other authority shall,-
(a) if
compensation has already been paid under section 161, direct the person liable
to pay the
compensation awarded by it to refund
to the insurer, so much thereof as is required to be
refunded in accordance with the
provisions of sub-section (1);
(b)
if an application for payment of compensation is pending under section
161 forward the
Particulars
as to the compensation awarded by it to
the insurer;
Explanation:- For the
purpose of this sub-section, an application for compensation under section 161
shall be deemed to be pending-
(i) if
such application has been rejected, till the date of the rejection of the application,
and
(ii) in any other case, till the date of
payment of compensation in pursuance of the application
163. Scheme for payment of compensation
in case if hit and run motor accidents, - (1) The Central Government may, by notification in Official
Gazette, make a scheme specifying, the manner in which the scheme shall be
administered by the General Insurance Corporation, the form, manner and time
within which applications for compensation may be made, he procedure to be
followed by such officers or authorities for considering and passing orders on
such applications 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
extend to such amounts
as may be specified but in no case five hundred rupees or with
both;
(b) the powers, functions or duties conferred or
imposed upon any officer or authority by
such scheme may be
delegated with the prior approval in writing of the Central
Government, by such
officer or authority to any officer or
authority;
© any provision of such scheme may operate with
retrospective effect from a date not
earlier than the date of establishment of the
Solatium Fund under Motor Vehicle Act,
1939 ( 4 of 1939) as it
stood immediately before the commencement of this Act:
Provided that no such retrospective
effect shall be given so as to prejudicially affect the interests of any person
who may be governed by such provision.
163-A. Special provisions 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 authorised 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 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 or vehicles concerned or of any other
persons.
(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 claim in certain cases, - Where a person is entitled to claim compensation under
section 140 and 160-A, he shall file the claim under either of the said
sections and not under both.
164. Power of the 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) Without prejudice to the generality of
the foregoing power, such rules may provide for-
(a)
the forms to be used for the purpose of this Chapter;
(b)
the making of applications for and the issue of certificate of
insurance;
©
the issue of duplicate to replace certificate of insurance lost,
destroyed or mutilated;
(d)
the custody, production, cancellation and surrender of certificates of
insurance;
(e)
the records to be maintained by Insurers of policies of insurance issued
under this
Chapter;
(f)
the identification by certificates or otherwise of persons or vehicles
exempted from
the provisions of this
Chapter;
(g) the
furnishing of information respecting policies of insurance by insurers;
(h)
adopting the provisions of this Chapter to vehicles brought into India
by persons
making only a temporary stay
therein or to vehicles registered in a reciprocating
country and operating on any
route or within any area in India by applying those
provisions with prescribed
modifications;
(i)
the form in which and the time within which the particulars referred to
in section
160 may be furnished; and
(j) any other matter which is to be, or may
be prescribed.
