Page 134 - The Motor Vehicles Act, 1988

120 THE MOTOR VEHICLES ACT, 1988 SECTION 164B

to any accident arising out of the use of motor vehicle, a compensation, of a sum of five
lakh rupees in case of death or of two and a half lakh rupees in case of grievous hurt to
the legal heirs or the victim, as the case may be.
(2) In any claim for compensation under sub-section (1), the claimant shall not be
required to plead or establish that the death or grievous hurt in respect of which the
claim has been made was due to any wrongful act or neglect or default of the owner of
the vehicle or of the vehicle concerned or of any other person.
(3) Where, in respect of death or grievous hurt due to an accident arising out of
the use of motor vehicle, compensation has been paid under any other law for the time
being in force, such amount of compensation shall be reduced from the amount of
compensation payable under this section.
164A. Scheme for interim relief for claimants
(1) The Central Government, may make schemes for the provision of interim relief
to claimants praying for compensation under this Chapter.
(2) A scheme made under sub-section (1) shall also provide for procedure to recover
funds disbursed under such scheme from the owner of the motor vehicle, where the
claim arises out of the use of such motor vehicle or other sources as may be prescribed
by the Central Government.
164B. Motor Vehicle Accident Fund

(1) The Central Government shall constitute a Fund to be called the Motor Vehicle
Accident Fund and thereto shall be credited—
(a) payment of a nature notified and approved by the Central Government;
(b) any grant or loan made to the Fund by the Central Government;
(c) the balance of the Fund created under scheme framed under section 163,
as it stood immediately before the commencement of the Motor Vehicles
(Amendment) Act, 2019; and
(d) any other source of income as may be prescribed by the Central
Government.
(2) The Fund shall be constituted for the purpose of providing compulsory
insurance cover to all road users in the territory of India.
(3) The Fund shall be utilised for the following, namely:—
(a) treatment of the persons injured in road accidents in accordance with the
scheme framed by the Central Government under section 162;
(b) compensation to representatives of a person who died in hit and run motor
accident in accordance with schemes framed under section 161;
(c) compensation to a person grievously hurt in a hit and run motor accident
in accordance with schemes framed under section 161; and
(d) compensation to such persons as may be prescribed by the Central
Government.
(4) The maximum liability amount that shall be paid in each case shall be such as
may be prescribed by the Central Government.