IMPORTANT POINT
The judgment establishes the principle that an insurance company cannot disclaim liability to pay 'no-fault' compensation under Section 140 of the Motor Vehicles Act, 1988 if the policy accepted liability under Chapter X and Chapter XI of the Act.

JUDGMENT

1. By order dated 25.02.2019, the Motor Accident Claims Tribunal, Senapati, accepted the prayer of the claimant in M.A.C.(D) Case No. 1 of 2019 and directed New India Assurance Company Ltd., respondent No. 1 therein, to pay a sum of Rs. 50,000/- (Rupees Fifty Thousand) to her as interim compensation in relation to the death of her husband, Losii Nipuni @ Nepuni Losii @ Nipuni Pukeni Losii, under Section 140 of the Motor Vehicles Act, 1988 (for brevity, the Act of 1988), within 30 days and in default, to pay interest thereon @ 6 % per annum. Aggrieved thereby, New India Assurance Company Ltd. is in appeal.

2. Heard Mr. A. Deni Sharma, learned counsel for the appellant; and Mr. S. Suresh, learned counsel for respondent No. 1, viz., the claimant.

3. Losii Nipuni, the claimant's husband, died in a car accident on 28.10.2018. The accident occurred near Martyr's Park, about 2 Kms away from Mao Police Station, while he was driving his daughter's Maruti Swift Dzire car. Admittedly, no other vehicle was involved in the accident which occurred due to brake failure, as per the report of the Inspector (Mechanics) Motor Vehicles Department, Government of Manipur. F.I.R. No. 10(10) 2018 was however registered by Mao Police Station under Sections 279, 338 & 304-A IPC, stating that the accident occurred due to rash and negligent driving of the vehicle by the claimant's husband. She filed M.A.C.(D) Case No. 1 of 2019 under Section 166 of the Act of 1988 seeking compensation to the tune of Rs. 1,72,00,000/- (Rupees One Crore Seventy-Two Lakh) along with a prayer for interim compensation of Rs. 50,000/- (Rupees Fifty Thousand) under Section 140 of the Act of the 1988.

h. subject vehicle was covered by the insurance policy issued by New India Assurance Company. The insurance company filed a written statement denying liability on the ground that the deceased was neither the owner/driver of the vehicle nor was he a third party. It further stated that the claim was subject to proof of how the accident occurred and the income of the deceased.

4. However, the Tribunal was of the opinion that for consideration of an application for award of interim compensation, on the basis of no-fault liability under Section 140 of the Act of 1988, it would not be required conduct a thorough inquiry and a summary procedure would be sufficient to ascertain the essential ingredients for application of the statutory provision. Considering the scheme of Chapters X and XI of the Act of 1988, the Tribunal found that the identity of the vehicle was clearly established along with the factum of being covered by an insurance policy as on the date of the accident. Further, the valid driving license of the deceased was also placed on record. The Tribunal accordingly granted interim relief under Section 140 of the Act of 1988.

5. Mr. A. Deni Sharma, learned counsel, would contend that the Tribunal was not justified in granting interim relief as the deceased was neither a third party nor the owner of the vehicle. He would point out that the deceased was himself responsible for the accident and no other vehicle was involved. He would place reliance on case law in support of his contention that the insurance company would have no liability. Per contra, Mr. S. Suresh, learned counsel, produced a copy of the insurance policy issued by the appellant insurance company and contended that it could not seek to disown liability in so far as grant of interim compensation under Section 140 of the Act of 1988 is concerned. He would also rely on case law to support the order under appeal.

6. It may be noted that Chapter X of the Act of 1988, containing Sections 140 to 144, was deleted from the statute book w.e.f. 01.09.2019 only and was therefore still in force at the time of the accident on 28.10.2018. Chapter X is titled 'Liability without fault in certain cases' and Section 140(1) speaks of the liability of the owner of the vehicle to pay compensation in respect of the death or permanent d