Documente Academic
Documente Profesional
Documente Cultură
Submitted by:
Faculty in charge:
Sachin Sharma
1. Introduction
1.1 Literature Review
1.2 Scope and Objectives
1.3 Research Questions
1.4 Methodology
5. Case Laws.
7. Conclusions
8. Bibliography
CHAPTER-1
INTRODUCTION
The Motor Vehicles Act, 1988 was enacted to consolidate and amend the law relating to
accidents arising from motor vehicles. When a law is enacted to consolidate and amend the
law, the Legislature not only takes into consideration the law as existed but also the law
which was prevailing prior thereto.1 The act looks into all aspects of road transport vehicles.
The act replaced the motor Vehicle Act of 1939. The Motor Vehicle Act, 1988 is a
comprehensive enactment in respect to various matters relating to traffic safety on the roads
and minimization of road accidents.2 The Motor Vehicles Act can be hailed as welfare
legislation since it deals with comprehensively about the road accidents involving motor
vehicles and also enabling the victims to claim compensation. 3 In general the act provides
licensing of drivers of motor vehicle, it deals with registration of motor vehicles, it deals with
insurance of the motor vehicle, and the traffic regulation, penalties. It also deals with control
of motor vehicles through permits, special provisions relating to state transport undertakings
and etc. There are many sections under this act.
This paper will mainly deal with the compensation under this act. It will talk about the
different provisions in the Motor Vehicle Act dealing with the compensation to the victims.
The accidents are numerous and the victims are mainly the pedestrians and the cyclist. The
law requires giving compensation to these victims by the motor vehicle owners or the drivers.
In India the people are unaware of this right of theirs to get compensation from the owners or
drivers of the motor vehicle from which the accident took place. It is sad to see that the law
does not perform the way it is meant to be as the victims do not get compensated because
they belong to the weaker group of the society. So, through the act of Motor Vehicle, 1988
the victims get compensated for the losses they suffer due to a motor vehicle.
Hon’ble Mr. Justice A.M. Ahmadi, CJI, M.R. Sreenath and Lalitha Sreenath, Law
relating to Compensation under Motor Vehicle Act (Eastern Book Company
Lucknow 1998)
In the forward of the book, Justice Ahmadi writes that there is an element of
subjectivity involved in the matter of the compensation. Jurists differ not only on what
counts compensation is due but also on what the proper compensation on each count
should be. He further goes on to write that the recent attempt to standardize such
assessment by an amendment in the Motor Vehicle Act has not been able to clear
entirely the confusions that prevail in the field.
Ratanlal & Dhirajlal, The Law of Torts (24th edn Wadhwa Nagpur 2006)
1 Machindranath Kernath Kasar Vs. D.S. Mylarappa, A.I.R.2008 SC 198
2 Common Cause (A Registered Society) v. Union of India A.I.R 2008 S.C. 116.
3 Rajasthan State Road Transport Corporation v. Jhami Bai Kanhiyalal, AIR 1987 Raj 486.
Ratanlal & Dhirajlal in the book talks about the Claims in the Motor Vehicles
Accidents in India. In this book, present facts and incidents are mentioned to enable
readers to interpret the Law relating to Accidental Claims. The concept of no fault
liability is also mentioned in respect of death or bodily injury resulting in motor
accident, providing for payment of compensation in certain cases of accidents without
proof of fault or negligence on the part of the owner or the driver of the motor vehicle.
The book mentions Indian case laws too to understand the concept properly.
Dr. R.K. Bangia, Law of Torts, Including Compensation under the Motor Vehicles Act
and Consumer Protection Laws (22nd edn Allahabad Law Agency Faridabad 2010)
The book talks about the accidents which take place due to the motor vehicles and
also talks about the law relating to compensation to victims of such accidents. It
provides that insurance of motor vehicles compulsory and owner of every motor
vehicle is bound to insure his vehicle against third party risk. It also provide for the
extent of liability of the insurer as well as owner of the vehicle in case of accident by
such vehicle. Explanation of the constitution of Claim Tribunals and the working
procedures to be followed by these tribunals are made.
Objective:
Study the objectives & history of Motor Vehicles Act, 1988.
Study and analyze provisions on compensation.
Understand the concept of No-fault Liability
Analyze the operation of Claims Tribunal.
Scope:
The scope of this project is limited to the study of the compensations under the
Motor Vehicle Act 1988. It focuses on the compensation in different cases. The project
will look into the history of the Motor Vehicles Act, 1988. It will further talk about the
amendment of the act in 2015.
1.3 Research Questions.
1.4 Methodology
For the purpose of analyzing the subject, the current study is focused on – critical analyze and
interpretation of the data collected from various sources. In this project doctrinal research was
involved and secondary sources was used i.e. journals, books, articles which has been written
and produced by eminent academicians. Explanatory type of research was used in this
project, because the project topic was not relatively new and unheard of. The paper will
analyze the Motor Vehicle Act, 1988 and the compensation under this act. It will further talk
about the amendments in the act. (A uniform method of citation has been followed
throughout the project – OSCOLA Method of citation).
CHAPTER-2
2.1 Objectives
The Motor Vehicles Act, 1988 has been prepared to achieve some objectives: (The Motor
Vehicle Act, 1988, Statement of Objects and Reasons)
I. To take care of the fast increasing number of both commercial vehicles and personal
vehicles in the country.
II. The need for encouraging adoption of higher technology in automotive sector.
III. The greater flow of passenger and freight with the least impediments so that islands of
isolation are not created leading to regional or local imbalances.
IV. Concern for road safety standards, and pollution-control measures, standards for
transportation of hazardous and explosive materials.
V. Simplification of procedure and policy liberalization’s for private sector operations in the
road transport field.
VII. Rationalization of certain definitions with additions of certain new definitions of new
types of vehicles.
VIII. Stricter procedures relating to grant of driving licences and the period of validity
thereof.
IX. Laying down of standards for the components and parts of motor vehicles;
XI. Provision for issuing fitness certificates of vehicles also by the authorized testing stations.
XIII. Liberalized schemes for grant of stage carriage permit on non nationalized routes, all-
India Tourist permits and also national permits for goods carriages.
XV. Provision for enhanced compensation in cases of “no fault liability” and in hit and run
motor accidents.
XVI. Provision for payment of compensation by the insurer to the extent of actual liability to
the victims of motor accidents irrespective of the class of vehicles.
XVII. Maintenance of State registers for driving licences and vehicle registration.
XIX. The introduction of newer type of vehicles and fast increasing number of both
commercial and personal vehicles in the country.
XX. Providing adequate compensation to victims of road accidents without going into long
drawn procedure.
XXII. Concern for road safety standards, transport of hazardous chemicals and pollution
control.
XXIII. Delegation of greater powers to State Transport Authorities and rationalizing the role
of public authorities in certain matters.
XXIV. The simplification of procedures and policy liberalization in the field of Road
Transport.
XXXI. States authorized to appoint one or more State Transport Appellate Tribunals.
XXXII. Punitive checks on the use of such components that do not conform to the prescribed
standards by manufactures, and also stocking / sale by the traders.
XXXIII. Increase in the amount of compensation of the victims of hit and run cases.
XXXIV. Removal of time limit for filling of application by road accident victims for
compensation.
2.2 History
The Motor Vehicles Act, 1939 was applicable for all type of Motor Accidents before the
Motor Vehicle Act, 1988 came into existed. The Act of 1939 was reviewed by a Working
Group which was constituted in January 1984 and there were draft proposals for a
comprehensive legislation to replace the existing Act. The new act was passed keeping in
mind all the changes in the past few years. This Working Group took into account the
recommendations and suggestions which were earlier made by various institutions like
Automotive Research Association of India (ARAI), Central Institute of Road Transport
(CIRT), and other transport organizations like the manufacturers and the public. The Working
group suggested keeping an eye in the fast increasing number of commercial and personal
vehicles in the country and the need for encouraging adoption of higher technology in
automotive sector. The working Group also put forward the idea of greater flow of passenger
and freight with the least impediments so that islands of isolation are not created leading to
regional or local imbalances. The concern for road safety standards, and pollution-control
measures, standards for transportation of hazardous and explosive materials were also kept in
mind. 8 Motor Vehicles Bill received the assent of the President on 14th October, 1988 and
came on the Statute Book as Motor Vehicles Act, 1988. The Act came into force with effect
from 1st July, 1989 replacing the Motor Vehicles Act, 1939. 9 The erstwhile Motor Vehicles
Act, 1939 was repealed by section 217 of the Motor Vehicles Act, 1988. Said section 217 also
repealed all laws corresponding to the Motor Vehicles Act, 1939, then being in force in any
State immediately before the commencement of the Act of 1988 in the respective states.10
CHAPTER-3
As the phrase itself says that the compensation given is just which means fair and equal. The
Claims Tribunal has power to award the compensation above the amount claimed, as to
award compensation which was just. The case of State of Haryana v. Jasbir Kaur11can be a
very good example under this principle. Another remarkable case is of Yadava Kumar v.
Divisional Manager National Insurance Co. Ltd.12
In these cases there are three principles which need to be considered by the Claims Tribunal
while giving compensation to the victims.
Under this, the researcher mainly will focus on death cases of the child and housewives. As
both these people i.e. the child and the housewife do not contribute to any income of the
family, it is believed that their death need not get compensated, but, under the Motor Vehicle
Act 1988, it is believed that the deceased i.e. the child and the housewife need to get
compensated. Few cases that are relevant under this principle are Lata Wadhawa v. State of
Bihar13(death of a child) and Rakesh Kumar v. Prem Lal14.
There comes the injury case under the guiding principles too. Injury can be of severe nature
and it can be of mild nature also. In injury cases too the victims get compensated the damages
they suffer can be of two types- pecuniary damages and non pecuniary damages. Pecuniary
Damages may include expenses incurred on medical treatment, attendance, transportation,
special diet, etc; actual loss of earning of profit up to the date of trial and future loss of
earning. The non- pecuniary damages include; damages for mental and physical shock, pain
and suffering already suffered or likely to be suffered in the future; damages to compensate
for the loss of amenities of life which may include a variety of matters, i.e., on account of
injury the claimant may not be able to walk, run or sit. Here too, two main factors need to be
kept in mind, one of them is accessibility, in some cases it becomes difficult to access a fair
compensation like where there is grave damage to the brain or any body part, this is the
reason why the compensation should be in a conventional figure. The other factor is
predictability; the parties should be able to predict with some accuracy the amount
compensation.
CHAPTER-4
Below mentioned are the sections under which the compensation to the victims is dealt with.
compensation which shall be payable under sub-section (1) in respect of the death of any
person shall be a fixed sum of fifty thousand rupees and the amount of compensation payable
under that sub-section in respect of the permanent disablement of any person shall be a fixed
sum of twenty-five thousand rupees.16 A claim for compensation under sub-section (1) shall
not be defeated by reason of any wrongful act, neglect or default of the person in respect of
whose death or permanent disablement the claim has been made nor shall the quantum of
compensation recoverable in respect of such death or permanent disablement be reduced on
the basis of the share of such person in the responsibility for such death or permanent
disablement.17 The liability without fault arises only when there is death or permanent
disablement of any person not in any other cases.
In this the other right means the principle of fault. So the compensation is paid in cases where
there is fault liability.
S.161 – Special provisions as to compensation in case of hit and run motor accidents
Under this section, compensation is given in case of hit and run motor accidents, in cases of
death the amount is fixed to a sum of Rs.8500 and for grievous hurt is fixed to a sum of Rs.
2000.
In this section the compensation under section 161 is refunded to the insurer.
Under this the manner in which the payment of compensation is paid to the victims is
mentioned.
The Claims Tribunal has been created by the Motor Vehicle Act, 1988 for speedier and
cheaper compensation to the victims of accident due to motor vehicle. The section 165 of
Motor Vehicles Act, 1988 empowers the State to constitute this Claims Tribunal to adjudicate
upon claims for compensation arising out of motor vehicle accidents, resulting in death or
bodily injury to persons or damage to any property of third parties. 18 .19 A Claims Tribunal
shall consist of such number of members as the State Government may think fit to appoint
and where it consists of two or more members, one of them shall be appointed as the
Chairman thereof.20 A person shall not be qualified for appointment as a member of a Claims
Tribunal unless he is, or has been, a Judge of a High Court, or is or has been a District
Judge.21 Where two or more Claims Tribunals are constituted for any area, the State
Government, may by general or special order, regulate the distribution of business among
them.22 The Claims Tribunal has been constituted to entertain petitions of compensation
against the negligent drivers, the owners of the vehicles, and the Insurance Companies.
The applications for compensation are submitted to the Claims Tribunal. The applicants in
this case are the victims who have suffered injuries, the legal representatives of the deceased,
owner of the property. No application for such compensation shall be entertained unless it is
made within six months of the occurrence of the accident.
18 Pandey Dr. J.N., Law of Torts with Consumer Protection Act and Motor Vehicles Act (Central Law
Publications Allahabad 2011) pg-353
19 Section 165 (1), Motor Vehicle Act, 1988
20 Section 165 (2), Motor Vehicle Act, 1988
21 Section 165 (3), Motor Vehicle Act, 1988
22 Section 165 (4), Motor Vehicle Act, 1988
Notwithstanding anything contained in the Workmen's Compensation Act, (8 of 1923.)
where the death of, or bodily injury to, any person gives rise to a claim for compensation
under this Act and also under the Workmen's Compensation Act, 1923, the person
entitled to compensation may without prejudice to the provisions of Chapter X claim such
compensation under either of those Acts but not under both.23
This section says that the Claims Tribunal should deliver the copies of the award of
compensation to the parties within fifteen days of the award and that the person against
whom the award is made shall deposit the amount awarded within thirty days of the
announcement of the award.24 In this, first the Claims Tribunal hears the parties and then
decides about the amount to be paid as compensation, the third part can be the insurer.
CHAPTER-5
CASE LAWS
The Motor Vehicles Act, 1988 can be explained by giving examples of few cases in the past.
Herewith in this chapter some of the cases have been mentioned:
What is material is that a claim under the Motor Vehicles Act is no bar to claiming
compensation, if permissible, also under a different law. The Double Bench of Gujarat
High Court held that the heirs of deceased in such case could claim compensation
both under the Motor Vehicles Act for negligence of the driver of the tractor and also
under Workmen’s Compensation Act, 1923 for death occurring out of and in the
course of employment.25
In this case two trailers were parked on a public lane in such a negligent manner that
one of them was placed over the other in a tilting position. As the plaintiff, Manoj
Kumar, a minor boy of 10 years, passed by the side of these two trailers, one of these
trailers slipped, and fell down on the plaintiff causing him serious injuries. It was held
that the claim for compensation in this case was not maintainable before the Claims
Tribunals as the two trailers, when the accident occurred, were not in motion or being
used as motor vehicle.26
In this case the question arouse about the position of the parties if an insurance
company pleads that the vehicle involved in the accident was not insured by it. In
such case, it was held that it is the primary duty of the owner of the vehicle to disclose
the insurance particulars of the vehicle and prima facie prove that the vehicle was
insured with a particular company, failing which the vehicle owner has to pay the
entire amount of compensation awarded in this case. It was also held that in case of a
dispute regarding the vehicle having been insured by an insurance company, it is the
In this case an accident was caused by a motorcyclist on 05.06.1990 and the vehicle
was not insured prior to 11.06.1990 hence, it was held that the liability falls solely on
owner of the vehicle despite the plea that it was stolen at the time when accident took
place according to the liability of no fault.28
In this case a tree had fallen on bus resulting in death of passenger. Tribunal
dismissed the claim on ground that accident was a vis major. It was held in appeal that
use of vehicle and death are so closely connected that it is difficult to treat death be an
Act of God unrelated to such user.29
CHAPTER-6
27 National Ins. Co. Ltd. v. R.K. Paswan, A.I.R. 1997 Pat. 236
28 Sitaram Akinchan v. Rajesh Sharma, A.I.R. 2007 ACC 604
29 Sulochana v. Karnataka State Road Transport Corporation, A.I.R. 2005 ACJ 849
The Motor Vehicles (Amendment) Bill, 2015 was first passed in Lok Sabha on 3 March 2015
and later in the Rajya Sabha on 11 March 2015. The Bill seeks to amend the Motor Vehicles
Act, 1988 and replace the ordinance promulgated in that regard. The ordinance was
promulgated in January 2015 after the bill was not able to pass in the winter session of
Parliament.
The key provisions of Amendment Bill are that the bill brings e-carts and e-rickshaws under
ambit of the Parent Act, so they can ply on roads across the country. As most of the E-
rickshaw and E-cart drivers do not have any licence, the extant provision will debar them
from operating e-Rickshaws/e-Carts for a year The Bill defines E-carts and e-rickshaws as
special purpose battery powered vehicles with power up to 4000 watts and having 3 wheels.
The bill mentions that these vehicles can be used for carrying goods or passengers and
mentions that these vehicles should be manufactured, equipped and maintained in accordance
with specifications as prescribed by Union government. The Bill of 2015 exempts drivers of
e-rickshaw and e-cart from the requirement of learner’s licence to drive. The proposal will
relax the conditions for issue of learner's licence for driving a transport vehicle. The Bill
gives powers to Union government to make Rules on the specifications for e-carts and e-
rickshaws, and the conditions and manner for issuing driving licenses. 30
CHAPTER-7
CONCLUSION
30 The Motor Vehicles (Amendment) Bill, 2015:A Bill further to amend the Motor Vehicles Act, 1988.( Bill No.
37); Nitin Gadkari,. New Delhi The 20th February, 2015
In the end, the researcher would like to say that as with time and with passing of years, the
amount of motor vehicles have increased tremendously, leading to many accidents. The
victims in these cases are mainly of the lower strata and are mainly the pedestrians and
cyclist. The Motor Vehicle Act of 1988 makes it a point that these victims are compensated
for loses they had to suffer due to accidents. The Act also provides petitions against
negligent drivers, owners of vehicles and insurance companies. With the help of the Claims
Tribunal the compensation is provided to the injured party and the amount of compensation is
decided by them after looking into the damages suffered very deeply. Compensation paid
should be just and equal. The amount should be given after looking at the damage suffered
and all these works are done by the Claims Tribunal.
CHAPTER-8
BIBLIOGRAPHY
Secondary Sources
Acts
Bills
The Motor Vehicles (Amendment) Bill, 2015:A Bill further to amend the Motor
Vehicles Act, 1988.( Bill No. 37); Nitin Gadkari,. New Delhi The 20th February,
2015
Books
Pandey Dr. J.N., Law of Torts with Consumer Protection Act and Motor Vehicles Act
(Central Law Publications Allahabad 2011)
Paranjape Dr. N.V., Law of Torts, Consumer Protection Act and Compensation under
Motor Vehicles Act (Central Law Agency Delhi 2013)
Sreenath M.R. & Sreenath Lalitha, Law relating to Compensation under Motor
Vehicle Act (Eastern Book Company Lucknow 1998)
Case Laws
Common Cause (A Registered Society) v. Union of India A.I.R 2008 S.C. 116.
Machindranath Kernath Kasar Vs. D.S. Mylarappa, A.I.R.2008 SC 198
Rajasthan State Road Transport Corporation v. Jhami Bai Kanhiyalal, AIR 1987 Raj
486.
Swaranlata v. N.T.I. Pvt. Ltd., A I R 1974 Gau 31; see also Bangia Dr. R.K., Law of
Torts, Including Compensation under the Motor Vehicles Act and Consumer
Protection Laws (22nd edn Allahabad Law Agency Faridabad 2010)
Internet Sources
www.legalservicesindia.com.
http://www.helplinelaw.com/govt-agencies-and-taxation/ACMV/accidents-claims-
under-the-motor-vehcles-act-1939.html
http://law-projects.blogspot.in/2013/04/no-fault-liability-under-motor-vehicle.html
http://hpsja.nic.in/jaarticle.pdf