Point of Law: Accident claim - Accident has occurred due to use of a motorcycle it would be irrelevant as to who was the rider of the vehicle and the victim of the accident would have to be compensated as per the compensation set out as per ScheduleII of Section 163A of the Act.

JUDGMENT :

1. This appeal is filed challenging the dismissal of claim petition under Section 163A of the Motor Vehicles Act, 1988 (hereinafter referred to as “the MV Act”, for short).

2. The case put forth by the Tribunal was that the claimant and his wife were proceeding on a motorcycle and since a dog suddenly came across their path, the claimant lost control and both of them fell off the motorcycle and as a result of this fall, the claimant and his wife sustained grievous injuries and ultimately his wife succumbed to the same.

3. The claimant contending that his wife was working as a medical assistant on a salary of Rs.4,000/- per month initiated proceedings under Section 163A of the MV Act.

4. The Tribunal has by the impugned order dismissed the claim petition on the ground that the claimant had borrowed the vehicle and since the accident had occurred when he was riding this borrowed motorcycle, he had stepped into shoes of the owner and was therefore himself liable to pay the compensation.

5. The question that arises for consideration in this appeal is as to whether the claimant would be disentitled to compensation for the death of a pillion rider, who was his wife, on the premise that he had borrowed the vehicle and was riding the motorcycle and was himself responsible for the accident.

6. A brief overview of the provisions of the MV Act would be necessary in order to answer this question.

7. The MV Act, which is a law relating to motor vehicles, realising the fact that occurrence of accidents arising out of the use of motor vehicles is unavoidable provides not only for providing of insurance of motor vehicles against third party risks but also for payment of compensation to victims of accidents arising out of the motor vehicle.

8. The scheme of the MV Act creates a liability to pay compensation to victims of an accident arising out of the use of a motor vehicle in four different ways.

9. The first liability to pay compensation to victims is created under Section 140 of the MV Act, whereby, on the principle of no fault, a liability is created on the owner of a motor vehicle or the owners of motor vehicles (when more than one vehicle is involved) to pay compensation, whenever a death or a permanent disablement has resulted from an accident arising out of the use of a motor vehicle.

10. The liability to pay compensation under Section 140 is however limited to a fixed sum of Rs.50,000/- in case of death and Rs.25,000/- in cases of permanent disablement. If a claim is raised under Section 140, the claimant is not required to plead or prove that the death or permanent disablement had occurred due to the wrongful act of either the owner of the vehicle or vehicles concerned or for that matter of any person. Section 140 also makes it clear that a claim under that section cannot be defeated on the ground that the person who was killed or suffered a disablement was responsible for the accident.

11. Thus, if a victim of an accident were to opt to make a claim under Section 140, the question as to who was responsible for the accident would not be of any consequence or relevance and the victim would be entitled for a fixed sum of compensation.

12. To put it differently, the victim of an accident would be entitled to a fixed sum of compensation, whether the owner was at fault or the victim himself was at fault. The objective which stands out from Section 140 is that the law mandates that the victim of a motor vehicle accident is bound to get compensation from the owner without reference to the person responsible for the accident. This establishes without a shadow of doubt that the MV Act is a piece of legislation which has been framed to ensure a victim is granted compensation whenever he suffers a motor vehicle accident.

13. The only other thing that is striking in Chapter X of the MV Act is that the right to claim compensation under Section 140 is in addition to the right of a victim to claim compensation under any other provision of