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The Supreme Court emphasized that Section 164 is a beneficial provision and can be applied retrospectively to ensure fair compensation ["SALOCHNA DEVI ETC. Vs KARAM SINGH SUBEDAR ETC. - Punjab and Haryana"].
Conversion of claims from Section 163-A to Section 164 and impact on awards
The transition from Section 163-A to Section 164 is also supported by legislative history, which shows a move towards fixed, no-fault compensation for accident victims ["KAUSALYA DEVI Vs ROSHAN LAL AND ORS - Punjab and Haryana"], ["MEENA AND ORS. Vs RAMESH AND ORS. - Punjab and Haryana"].
Legal and procedural considerations
Analysis and ConclusionThe transition from Section 163-A to Section 164 of the Motor Vehicles Act, 1988, marked a significant legislative shift towards fixed, no-fault compensation for motor accident victims. Courts have consistently interpreted Section 164 as a beneficial provision that can be applied retrospectively, leading to increased awards—typically Rs. 5 lakh for death claims. This change aims to promote uniformity, fairness, and prompt compensation, overriding earlier, more income-dependent schemes. The legal trend reflects a clear legislative intent to streamline compensation procedures, with courts actively applying Section 164 even for cases predating its enactment, ensuring victims receive equitable relief ["KAUSALYA DEVI Vs ROSHAN LAL AND ORS - Punjab and Haryana"], ["MEENA AND ORS. Vs RAMESH AND ORS. - Punjab and Haryana"], ["SALOCHNA DEVI ETC. Vs KARAM SINGH SUBEDAR ETC. - Punjab and Haryana"].
Road accidents in India claim countless lives and cause severe injuries every year, leaving families in distress and financial hardship. One common query that arises is: What is a 164 of MV Act award? This refers to the compensation provided under Section 164 of the Motor Vehicles (MV) Act, 1988, a vital provision offering prompt, no-fault relief to victims of death or grievous hurt from motor accidents. This blog breaks down the essentials, drawing from statutory provisions and judicial insights to help you navigate this area.
Note: This is general information based on legal precedents and statutes. It is not specific legal advice. Consult a qualified lawyer for your case.
Section 164 establishes a no-fault compensation scheme, meaning claimants don't need to prove negligence by the driver or owner. It's designed for quick relief, especially when fault is hard to establish. The provision mandates payment in cases of:- Death from a motor accident.- Grievous hurt caused by motor vehicles. N. JAYASREE VS CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LTD. - 2021 7 Supreme 481
As per the section, Section 164 provides for the payment of compensation in cases of death or grievous hurt caused by motor vehicle accidents. N. JAYASREE VS CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LTD. - 2021 7 Supreme 481 This framework prioritizes social justice, ensuring timely aid to victims or their legal heirs. N. JAYASREE VS CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LTD. - 2021 7 Supreme 481
Post the 2019 amendments to the MV Act (effective from key dates like 01.04.2022 for some provisions), fixed amounts were standardized:- Rs. 5 lakhs for death.- Rs. 2.5 lakhs for grievous hurt. Iffco Tokio General Insurance Company Limited VS Uma Devi - 2023 0 Supreme(Del) 4229
The Supreme Court in Ram Murti v. Punjab State Electricity Board reinforced this, directing courts to adhere to these limits for standardized, expedited awards. Iffco Tokio General Insurance Company Limited VS Uma Devi - 2023 0 Supreme(Del) 4229 Similarly, other rulings affirm, Claimants are entitled to compensation under Section 164 of the Motor Vehicles Act, 1988, irrespective of negligence, with a fixed amount of Rs.5,00,000/- for death in a road accident. Sushma Devi VS Tarlochan Singh - 2024 Supreme(P&H) 1198
These amounts act as a statutory minimum or ceiling, binding unless legally altered. Courts cannot arbitrarily exceed them without express permission. N. JAYASREE VS CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LTD. - 2021 7 Supreme 481
Legal heirs or representatives of the deceased can file claims, regardless of dependency. The section also provides mechanisms for claiming compensation by legal heirs or representatives of the deceased, regardless of dependency, emphasizing the right to claim. Lalhruaitluangi, D/o. Rangchhingpuii (L. ) VS Bajaj Allianz Gen. Insu. Co. Ltd. , Represented by the Branch Manager - 2023 0 Supreme(Gau) 1371
The process is simplified:- File before the Motor Accident Claims Tribunal (MACT).- No need to prove fault under this no-fault scheme.- Interest may be awarded, often at 7.5% from the claim petition date, as in cases where tribunals applied beneficial provisions retroactively. Sushma Devi VS Tarlochan Singh - 2024 Supreme(P&H) 1198
Recent cases highlight retroactive benefits. For instance, even pre-amendment accidents may invoke Section 164 if beneficial, as the Supreme Court applied it to older awards. Sushma Devi VS Tarlochan Singh - 2024 Supreme(P&H) 1198HARDIAL SINGH Vs MAHINDER SINGH AND ORS. - 2026 Supreme(Online)(P&H) 1123 In one ruling, Since Section 163-A of the Motor Vehicles Act, 1988 is now substituted by Section 164... compensation should be enhanced as per the substituted statutory provision. HARDIAL SINGH Vs MAHINDER SINGH AND ORS. - 2026 Supreme(Online)(P&H) 1123
Courts emphasize strict adherence to statutory limits while ensuring fairness. Awards must be just, reasonable, and in line with the statutory framework. N. JAYASREE VS CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LTD. - 2021 7 Supreme 481
Section 163A (structured formula for compensation) was substituted by the enhanced Section 164 via the 2019 Amendment. Claims under 163A can now convert to 164 benefits, removing income caps and standardizing payouts. In view of the foregoing discussion, the compensation awarded to the appellant/claimant under Section 163-A... is hereby converted to compensation payable under Section 164. HARDIAL SINGH Vs MAHINDER SINGH AND ORS. - 2026 Supreme(Online)(P&H) 1123New India Assurance Company Limited, through Divisional Manager vs Gayatri Nitin Lutade - 2025 Supreme(Bom) 1862
Even claims under Section 166 (fault-based) may invoke Section 164's no-fault liability per the 2019 Amendment's proviso. If we read Section 149, 164 & Second Proviso of Sub Section 1 of Section 166... a claimant who filed a claim under Section 166... can claim compensation under Section 164 i.e. no fault liability. Senjuti Roy (Nee Sengupta) VS New India Assurance Co. Ltd. - 2023 Supreme(Cal) 191
Interest is discretionary under Section 171, typically 6-7.5% from the filing date. Appeals under Section 173 require a minimum dispute amount (e.g., Rs. 1 lakh for Section 140 orders). Tinkumoni Talukdar Bordoloi W/o Late Poran Bordoloi @ Parijat VS Director of Health Services - 2022 Supreme(Gau) 670Madhav S/o. Vitthal Chattekar VS Mohammad Ali S/o. Mubarik - 2022 Supreme(Bom) 1740
In a notable case, claimants received Rs. 5 lakhs despite tribunal dismissal for no negligence, with 7.5% interest, underscoring the provision's beneficial nature. Sushma Devi VS Tarlochan Singh - 2024 Supreme(P&H) 1198
Section 164's non-obstante clause overrides conflicting provisions, prioritizing victim relief. CHANDRA MAYA SUNWAR v/s GEETA MUKHIA AND ANO. - 2025 Supreme(Online)(Sikk) 79
Road safety remains paramount, but when accidents occur, Section 164 provides a safety net. Stay informed, drive safe, and seek expert guidance for claims.
References:- N. JAYASREE VS CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LTD. - 2021 7 Supreme 481, Iffco Tokio General Insurance Company Limited VS Uma Devi - 2023 0 Supreme(Del) 4229, Lalhruaitluangi, D/o. Rangchhingpuii (L. ) VS Bajaj Allianz Gen. Insu. Co. Ltd. , Represented by the Branch Manager - 2023 0 Supreme(Gau) 1371, HARDIAL SINGH Vs MAHINDER SINGH AND ORS. - 2026 Supreme(Online)(P&H) 1123, Sushma Devi VS Tarlochan Singh - 2024 Supreme(P&H) 1198, Senjuti Roy (Nee Sengupta) VS New India Assurance Co. Ltd. - 2023 Supreme(Cal) 191, New India Assurance Company Limited, through Divisional Manager vs Gayatri Nitin Lutade - 2025 Supreme(Bom) 1862, CHANDRA MAYA SUNWAR v/s GEETA MUKHIA AND ANO. - 2025 Supreme(Online)(Sikk) 79
#Section164MVAct, #RoadAccidentCompensation, #NoFaultLiability
Accordingly, the award dated 02.04.2010 is modified by converting the claim petition under Section 163-A (pre 2018 amendment) to Section 164 (post 2018 amendment) of the Motor Vehicles Act, 1988. ... Since Section 163-A of Motor Vehicles Act, 1988 is now substituted by Section 164 of Motor Vehicles Act, 1988 (Act 32 of 2019 w.e.f 01.04.2022), compensation is liable to be enhanced as per the substituted statutory provision i.e. ... ii) That Section 163-A of Motor Vehi....
Accordingly, the award dated 17.07.2008 is modified by converting the claim petition under Section 163-A (pre 2018 amendment) to Section 164 (post 2018 amendment) of the Motor Vehicles Act, 1988. ... Since section 163-A of Motor Vehicles Act, 1988 is now substituted by Section 164 of Motor Vehicles Act, 1988 (Act 32 of 2019 w.e.f 01.04.2022), compensation is liable to be enhanced as per the substituted statutory provision i.e. ... ii) That Section 163-A of Motor Vehi....
Accordingly, the award dated 04.03.2010 is modified by converting the claim petition under Section 163-A (pre 2018 amendment) to Section 164 (post 2018 amendment) of the Motor Vehicles Act, 1988. ... Since section 163-A of Motor Vehicles Act, 1988 is now substituted by Section 164 of Motor Vehicles Act, 1988 (Act 32 of 2019 w.e.f 01.04.2022), compensation is liable to be enhanced as per the substituted statutory provision i.e. ... ii) That Section 163-A of Motor Vehi....
Since Section 163-A of the Motor Vehicles Act, 1988 is now substituted by Section 164 of the Motor Vehicles Act, 1988 (Act 32 of 2019 w.e.f. 01.04.2022), compensation should be enhanced as per the substituted statutory provision i.e. ... In view of the foregoing discussion, the compensation awarded to the appellant/claimant under Section 163-A of the Motor Vehicles Act is hereby converted to compensation payable under Section 164 of the Act. ... legislation and to ens....
In the said case also, the accident as well as the award were much prior to the coming in force of Section 164 of the Motor Vehicles Act, 1988 and the Hon’ble Supreme Court in view of the fact that it was a beneficial provision, applied the provisions of Section 164 of the Motor Vehicles Act, 1988. ... The said Section 164 of the Motor Vehicles Act, 1988 is reproduced herein below: - “164. ... In the said case also, although the accident had taken p....
It is submitted by learned counsel for the appellant that learned Tribunal failed to appreciate the provision under section 164 of the MV Act 1988, being in force at the time of passing the order which clearly states that the award shall be Rs.5,00,000/- in case of death. ... In the instant case, for proper adjudication, it is necessary to look into Section 164 (1) of The Motor Vehicles (Amendment) Act, 2019 which reads as follows: "164. (1) Notwithstanding anything contained in this #....
Moreover, the reliance placed on the subsequent introduction of Section 164 of the Act is misconceived. Recently, the Hon’ble Supreme Court in Valsamma Chacko v. M.A. ... Punjab State Electricity Board 2022 (4) TAC 738, wherein the benefit of Section 164 was extended to the claimants notwithstanding the fact that the accident had occurred prior to the amendment. Consequently, it is prayed that the impugned award be modified accordingly. ... It is contended that the appellants are entitled to compensation under Section #H....
If we read Section 149, 164 & Second Proviso of Sub Section 1 of Section 166 of the Motor Vehicles Act, 1988 after the Amendment Act, 2019, it comes to view that a claimant who filed a claim under Section 166 of the Motor Vehicles Act, 1988 can claim compensation under Section 164 i.e. no fault liability ... By the Amendment Act, 2019 Section 140 to 144 under chapter X of the Motor Vehicles Act, 1988 were omitted. The scheme of no fault liability under Section 140 was....
164 of the amended Act. ... It is Section 164 of the amended Act that commences with a “non-obstante clause”. The error in the impugned Judgment is thus being flagged. No petition under Section 164 of the MV Act had been filed by the Appellant/Claimant. ... (viii) That having been said, Section 164 of the MV Act (vide Amendment Act 2019) provides thus; “164. Payment of compensation in case of death or grevious hur....
In this regard, it is stated that Section 163-A of the Motor Vehicles Act is now substituted as Section 164 of the Motor Vehicles Act. The bare perusal of Section 164 shows no cap of income has been introduced. ... However, amended Section 164 of the Act, nowhere states that the compensation is to be awarded on the basis of any schedule given under the Act. ... Therefore, legal position which appears from the reading of Section 164 of the A....
Act is also an award that is appellable under Section 173(1) of the M.V. Act. There is no doubt, as held in the decisions cited above that, an award passed under Section 140 of the M.V. However, the sub-section (1) as observed above is subject to sub-section (2) which provides for a minimum amount involved in the dispute of One lakh rupees subject to which an appeal may be preferred.
The said provision further mandates that the learned Tribunal can award interest on simple interest rate and the same shall be payable not earlier than the date of making of the claim. Section 171 of MV Act provides for award of interest over the compensation awarded. Now coming to the rate of interest, the learned Tribunal below has granted 6% interest from the date of filing of the claim petition. The said provision vest a discretion with the Tribunal to award interest at ‘such rate’ and from ‘such date’ cover the compensation awarded.
Provided that where such application makes a claim for compensation under section 140 in respect of the death or permanent disablement of any person, such claim and any other claim (whether made in such application or otherwise) for compensation in respect of such death or permanent disablement shall be disposed of in accordance with the provisions of Chapter X. The Claims Tribunal shall treat any report of accidents forwarded to it under sub-section (6) of section 158 as an application for compensation under this Act.] Section 168 of M.V. Act . Award of the Claims Tribunal.—#HL_EN....
Submissions on Interpretation of Scheme of MV Act for award of compensation:- Since the reading of MV Act in such a way would amount to "casus omissus" in the MV Act, which otherwise would also be impermissible.
As held by the Division Bench, under S. 163A, a victim of a vehicular accident or his legal representative is entitled to get compensation without pleading or establishing wrongful act or negligence or default of the owner of the vehicle or of any concerned person. A victim or his legal representative, apart from claiming as no fault liability under Section 140 MV Act till final award is made under Section 166 MV Act, can make a claim under the Scheme of fault liability under Section 166 MV Act and the interim award will get merged with the final award. On the other hand, t....
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