Punjab & Haryana High Court Clarifies Compensation Rules. No Need to Prove Negligence for Compensation Under Section 163-A
The Punjab & Haryana High Court has ruled that claimants need not prove the driver’s negligence to receive compensation under Section 163-A of the Motor Vehicles Act. This decision ensures that victims or their legal heirs can secure compensation without proving fault.
Court’s Key Observations: Punjab & Haryana High Court Clarifies Compensation Rules
Section 163-A makes the vehicle owner or insurer liable for compensation in case of death or permanent disability due to an accident.
Victims do not need to establish negligence or wrongful act to claim compensation.
The liability is based solely on the fact that the vehicle was in use at the time of the accident.
Judgment in Insurance Company’s Plea
The ruling came while hearing a batch of petitions filed by United India Insurance Co. Ltd. The insurer challenged a tribunal’s compensation award linked to a 2013 accident. A tractor was allegedly left parked in the middle of the road without warning signs, leading to the accident.
The court found that the tribunal’s compensation award was justified under Section 163-A. Even though fault is not a factor, compensation is fixed based on a structured formula in the Second Schedule of the Act:
Rs. 50,000 in case of death
Rs. 25,000 for permanent disability
Impact on Insurance Claims
The court emphasized that medical expenses must be supported by valid documents. If proven, insurers cannot challenge the claim. It also clarified that amendments made to the Act in 2019 do not apply to cases from earlier years.
This decision reinforces the rights of accident victims to receive swift compensation without legal hurdles.
