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The Motor Vehicles Act, 1988,

Introduction

QUESTION BANK

Q.1.    Discuss provisions relating to liability without fault in certain cases.        

SHORT NOTES

1.    No fault liability.

I. INTRODUCTION-

    Liability arising out of a motor accident falls originally under ‘Tort’. However, the provisions relating to liability arising out of motor vehicle accidents were codified for the first time by the Motor Vehicles Act of 1939. The Motor Vehicles Act of 1988 replaced the earlier Act of 1939. The present Act of 1988 contains XIV Chapters and 217 Sections. It has two Schedules. The Act makes insurance compulsory for every vehicle.    

    Before the 2019 amendment, Chapter X from Ss. 140 to 144 deal with ‘Liability without fault’ in certain cases. Chapter XI from Ss. 145 to 164 deals with ‘insurance of motor vehicle against third party risks’ and Chapter XII from Ss. 165 to 176 deals with ‘Claim Tribunals’. The Second Schedule provided for a ‘structured formula’ to be used while computing compensation payments to the victim.

    However, the 2019 amendment in the Motor Vehicles Act, 1988, has removed Chapter X and the sections relating thereto, i.e. S. 140 to S. 144 (the remedy of no-fault liability). Similarly, the remedy of compensation under S. 163 A and the Second Schedule thereunder are also removed. However, Chapter XI (S. 145 to S. 164) has been substituted with the new sections, i.e., Ss. 145 to 164 D (We have discussed the new provisions, comparing them with the old provisions at appropriate places).

In modern times, the number of vehicles has increased enormously, and so has the number of accidents. Many people either die or suffer injuries in accidents. The aforementioned provisions are incorporated into the Motor Vehicle Act to provide compensation to accident victims. We will discuss these provisions one by one.