The Motor Vehicles Act, 1988

Where death or permanent disablement of any person has resulted from an accident arising out of the use of a motor vehicle or motor vehicles, the owner of the vehicle shall, or, as the case may be, the owners of the vehicles shall, jointly and severally, be liable to pay compensation in respect of such death or disablement in accordance with the provisions of this section.

The amount of compensation which shall be payable under sub-section (1) in respect of the death of any person shall be a fixed sum, and the amount of compensation payable under that sub-section in respect of the permanent disablement of any person shall likewise be a fixed sum, as notified by the Central Government from time to time.

In any claim for compensation under sub-section (1), the claimant shall not be required to plead and establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act, neglect or default of the owner or owners of the vehicle or vehicles concerned or of any other person.

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.

The right to claim compensation under section 140 in respect of death or permanent disablement of any person shall be in addition to any other right to claim compensation in respect thereof under any other provision of this Act or of any other law for the time being in force.

A claim for compensation under section 140 in respect of death or permanent disablement of any person shall be disposed of as expeditiously as possible, and where compensation is claimed in respect of such death or permanent disablement both under section 140 and also on the principle of fault under any other provision of this Act or any other law for the time being in force, the claim for compensation under section 140 shall be disposed of in the first place.

A State Government may, by notification in the Official Gazette, constitute one or more Motor Accidents Claims Tribunals for such area as may be specified in the notification, for the purpose of adjudicating upon claims for compensation in respect of accidents involving the death of, or bodily injury to, persons arising out of the use of motor vehicles, or damage to any property of a third party so arising, or both.

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.

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, or is qualified for appointment as a Judge of a High Court.

An application for compensation arising out of an accident of the nature specified in sub-section (1) of section 165 may be made — (a) by the person who has sustained the injury; or (b) by the owner of the property; or (c) where death has resulted from the accident, by all or any of the legal representatives of the deceased; or (d) by any agent duly authorised by the person injured or all or any of the legal representatives of the deceased, as the case may be.

Every application under sub-section (1) shall be made, at the option of the claimant, either to the Claims Tribunal having jurisdiction over the area in which the accident occurred, or to the Claims Tribunal within the local limits of whose jurisdiction the claimant resides or carries on business, or within the local limits of whose jurisdiction the defendant resides, and shall be in such form and contain such particulars as may be prescribed.

On receipt of an application for compensation made under section 166, the Claims Tribunal shall, after giving notice of the application to the insurer and after giving the parties (including the insurer) an opportunity of being heard, hold an inquiry into the claim and may make an award determining the amount of compensation which appears to it to be just, specifying the person or persons to whom compensation shall be paid, and specifying the amount which shall be paid by the insurer, owner, or driver of the vehicle involved in the accident, or by all or any of them, as the case may be.