No Fault Liability and Section 164

In one line

The owner or the insurer must pay a fixed sum for a death or a grievous hurt caused by a motor vehicle, and the claimant need not plead or prove that anybody was at fault.

In the wording a student can write in an exam: section 164 of the Motor Vehicles Act, 1988, as substituted by the Motor Vehicles (Amendment) Act, 2019, provides that notwithstanding anything in the Act or any other law, the owner of the motor vehicle or the authorised insurer shall be liable to pay compensation of five lakh rupees in the case of death and two and a half lakh rupees in the case of grievous hurt arising out of the use of a motor vehicle, that the claimant need not plead or establish any wrongful act, neglect or default, and that compensation paid under any other law is to be reduced from what is payable under the section.

What section 164 provides

Sub-section (1). Notwithstanding anything contained in the Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorised insurer shall be liable to pay, in the case of death or grievous hurt due to any accident arising out of the use of a motor vehicle, compensation of a sum of five lakh rupees in case of death or of two and a half lakh rupees in case of grievous hurt, to the legal heirs or the victim, as the case may be.

Sub-section (2). In any claim under sub-section (1), the claimant shall not be required to plead or establish that the death or grievous hurt was due to any wrongful act or neglect or default of the owner of the vehicle, of the vehicle concerned, or of any other person.

Sub-section (3). Where, in respect of the death or grievous hurt, compensation has been paid under any other law for the time being in force, such amount shall be reduced from the amount payable under the section.

Four things follow.

The liability is on the owner or the insurer, and the words are disjunctive, so a claimant may proceed against either.

"Grievous hurt" takes its criminal law meaning, by section 145(c) of the Act.

The claim is heard by the Claims Tribunal, because the Explanation to section 165(1) declares that the expression "claims for compensation in respect of accidents involving the death of or bodily injury to persons arising out of the use of motor vehicles" includes claims for compensation under section 164.

And the section is a floor, not a ceiling. It gives a quick fixed sum without proof of fault; a claimant who can prove fault claims the full compensation under section 166, and the section 164 payment is accounted for.