The object of Section 140 of the Motor Vehicles Act, 1988, is to make available compensation to claimants expeditiously, without requiring proof of negligence on the part of the owner or driver of the vehicle. Insurance Companies have a duty to discharge their obligations properly and respond to claims in a timely manner.

( 1 ) THIS appeal has been preferred by the claimants against an order dated 10-3-1998, passed by the Motor Accidents Claims Tribunal, Gwalior (Third Additional District Judge, Gwalior (for short, the 'tribunal'), whereby the Tribunal has rejected their application under Section 140 of the Motor Vehicles Act, 1988 (hereinafter referred to as the 'act' ).

( 2 ) THE facts are that Indu Khan was driver of vehicle No. CIH 7681. While he was driving the truck, it met with an accident in which Indu Khan died. The claimants who are the legal representatives of deceased Indu Khan made a claim for compensation under Section 166 of the Act. Along with this claim an application for compensation under Section 140 of the Act was also made before the Tribunal. While considering this application, the Tribunal has arrived at the findings that the deceased himself was driving the vehicle and it was due to his rash and negligent driving that the accident took place in which he died. On these findings, the Tribunal rejected the application under S. 140 of the Act.

( 3 ) SMT. Purnima Nigam, learned counsel for the appellants, contended that in this case the Tribunal has found that the accident had taken place arising out of the vehicle; the deceased was driving the vehicle at the time of the accident, and he died in the accident. The counsel contended that in rejecting the application the Tribunal has totally misconstrued the provisions of Section 140 of the Act.

( 4 ) SECTION 140 of the Act is quoted below :"140. Liability to pay compensation in certain cases on the principle of no fault.- (1) 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 vehicle shall, jointly and severally, be liable to pay compensation in respect of such death or disablement in accordance with the provisions of this section. (2) 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 of fifty thousand rupees and the amount of compensation payable under that sub-section in respect of the permanent disablement of any person shall be a fixed sum of twenty-five thousand rupees. (3) In any claim for compensation under sub-section (1), the claimants 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. (4) 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. "

( 5 ) IT is settled law that in a claim based on the principle of no fault liability the claimants 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 of the owner nor such a claim shall 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. In this case due to the accident involving the vehicle in question the driver himself was dead.

( 6 ) IN Shivaji Dayanu Patil v. Vatschala Uttam More, AIR 1991 SC 1769 : 1991 ACJ 777 the Supreme Court, while interpreting the scope of Section 92-A of the Motor Vehicles Act 1939 (corresponding to Section 140 of the Act) quoted with approval the law enunciated by it in an earlier decision in the case of Gujarat State Road Transport Corporation v. Ramanbhai Prabhatbhai, A