Page 147 - The Motor Vehicles Act, 1988

SECTION 163B THE MOTOR VEHICLES ACT, 1988 133

(i) if such application has been rejected till the date of the rejection of the application,
and
(ii) in any other case, till the date of payment of compensation in pursuance of the
application.
163. Scheme for payment of compensation in case of hit and run motor accidents
(1) The Central Government may, by notification in the Official Gazette, make a scheme
specifying the manner in which the scheme shall be administered by the General Insurance
Corporation, the form, manner and the time within which applications for compensation may be
made, the officers or authorities to whom such applications may be made, the procedure to be
followed by such officers or authorities for considering and passing orders on such applications,
and all other matters connected with, or incidental to, the administration of the scheme and the
payment of compensation.
(2) A scheme made under sub-section (1) may provide that—
(a) a contravention of any provision thereof shall be punishable with imprisonment
for such term as may be specified but in no case exceeding three months, or with
fine which may extend to such amount as may be specified but in no case exceeding
five hundred rupees or with both;
(b) the powers, functions or duties conferred or imposed on any officer or authority
by such scheme may be delegated with the prior approval in writing of the Central
Govt., by such officer or authority to any other officer or authority;
(c) any provision of such scheme may operate with retrospective effect from a date not
earlier than the date of establishment of the Solatium Fund under the Motor
Vehicles Act, 1939 as it stood immediately before the commencement of this Act:
PROVIDED that no such retrospective effect shall be given so as to prejudicially affect the
interests of any person who may be governed by such provision.
163A. Special provisions as to payment of compensation on structured formula
basis
(1) Notwithstanding anything contained in this Act or in any other law for the time being
in force or instrument having the force of law, the owner of the motor vehicle or the authorised
insurer shall be liable to pay in the case of death or permanent disablement due to accident
arising out of the use of motor vehicle, compensation, as indicated in the Second Schedule, to the
legal heirs or the victim, as the case may be.
Explanation : For the purposes of this sub-section, “permanent disability” shall have the
same meaning and extent as in the Workmen’s Compensation Act, 1923 (8 of 1923).
(2) In any claim for compensation under sub-section (1), the claimant shall not be required
to plead or establish that the death or permanent disablement 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 vehicle
concerned or of any other person.
(3) The Central Government may, keeping in view the cost of living by notification in the
Official Gazette, from time to time amend the Second Schedule.
163B. Option to file claim in certain cases
Where a person is entitled to claim compensation under section 140 and section 163A, he
shall file the claim under either of the said sections and not under both.