Chandigarh, January 31:
In a significant ruling, the Punjab and Haryana High Court has reaffirmed that victims of road accidents can receive compensation under Section 163A of the Motor Vehicles Act without the need to establish fault or negligence. The judgment reinforces the “no-fault liability” principle, ensuring that claimants are compensated regardless of who caused the accident.
The decision was delivered by a Bench comprising Justice Sureshwar Thakur and Justice Kirti Singh in a case involving a tractor that was left unattended in the middle of the road without any warning signs, leading to an accident.
The court examined relevant legal provisions and clarified that under Section 163A, claimants do not need to prove that the driver of the offending vehicle was at fault. The compensation amount is determined using a structured formula provided in the Act’s second schedule, making it distinct from other motor accident claims. Unlike traditional compensation cases that rely on the “multiplier method” to assess long-term financial impact, Section 163A claims follow a fixed formula for determining payouts.
Additionally, the court emphasized that the vehicle owner is automatically liable for compensation under Section 140, which mandates financial responsibility on a no-fault basis.
Addressing concerns raised by the insurance company, the court ruled that medical expenses supported by valid bills cannot be disputed, as claims under this section are based on documentary evidence. It also stated that if compensation has already been awarded under the no-fault principle, any additional claims under other sections must be adjusted accordingly.
By applying these legal principles, the High Court upheld the victim’s right to compensation and dismissed the insurance company’s objections. The ruling highlights the Motor Vehicles Act’s purpose—to ensure fair and just compensation for accident victims—and underscores the judiciary’s role in safeguarding this objective.
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