Motor Vehicles Act: Section 140 – Liability to pay compensation in certain cases on the principle of no fault

(1) Where death or permanent disablement of any person has resulted from an accident arising out of the use of a motor vehicle or motor vehicles, the owner of the vehicle shall, or, as the case may be, the owners of the vehicles shall, jointly and severally, be liable to pay compensation in respect of such death or disablement in accordance with the provisions of this section.

(2) The amount of compensation which shall be payable under sub-section (1) in respect of the death of any person shall be a fixed sum of 1[fifty thousand rupees] and the amount of compensation payable under that sub-section in respect of the permanent disablement of any person shall be a fixed sum of 2[twenty-five thousand rupees].

(3) In any claim for compensation under sub-section (1), the claimant shall not be required to plead and establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act, neglect or default of the owner or owners of the vehicle or vehicles concerned or of any other person.

(4) A claim for compensation under sub-section (1) shall not be defeated by reason of any wrongful act, neglect or default of the person in respect of whose death or permanent disablement the claim has been made nor shall the quantum of compensation recoverable in respect of such death or permanent disablement be reduced on the basis of the share of such person in the responsibility for such death or permanent disablement.

3[(5) Notwithstanding anything contained in sub-section (2) regarding death or bodily injury to any person, for which the owner of the vehicle is liable to give compensation for relief, he is also liable to pay compensation under any other law for the time being in force:
Provided that the amount of such compensation to be given under any other law shall be reduced from the amount of compensation payable under this section or under section 163A.]

Simplified Explanation

Section 140 of the Motor Vehicles Act establishes a “no-fault” liability for the payment of compensation in the event of certain types of road accidents. This provision ensures that victims receive compensation without the need to prove the fault or negligence of the driver or owner of the vehicle involved in the accident. Here’s a detailed explanation:

Section 140 stipulates that in the case of death or permanent disablement resulting from a motor vehicle accident, compensation will be paid irrespective of whether there was any wrongful act, neglect, or fault on the part of the driver or owner of the vehicle.

Key Points of Section 140:

  1. Scope of Compensation:
    • The section applies to cases of death or permanent disablement caused by motor vehicle accidents. It ensures timely financial support to victims or their families without the lengthy process of proving fault.
  2. Amount of Compensation:
    • The Act usually specifies a fixed minimum amount of compensation for death and permanent disablement. The actual amount may vary based on the specifics of the case and subsequent amendments to the Act.
  3. Immediate Relief:
    • This provision is intended to provide immediate relief to the victims or their families, reducing the financial impact of the accident while other legal proceedings may continue to determine further liabilities.
  4. Claim Process:
    • Victims or their families can claim this compensation through a relatively straightforward legal process, typically involving an application to a Motor Accidents Claims Tribunal.
  5. Exclusions:
    • Compensation under this section is generally available regardless of the victim’s conduct during the accident, such as negligence or fault, unless explicitly excluded by the Act (e.g., if the victim was committing a crime at the time of the accident).
  6. Insurance Implications:
    • Insurance companies are generally liable to pay the no-fault compensation. This is typically covered under the mandatory third-party insurance that all vehicle owners are required to have.

Importance of Section 140:

  • Quick Compensation: Provides a mechanism for quick financial relief to victims or their families, which is crucial in helping them cope with the immediate aftermath of an accident.
  • Simplifies Legal Process: Eliminates the need for prolonged litigation to establish the fault of the driver, thus speeding up the compensation process.
  • Universal Coverage: Ensures that compensation is paid in all qualifying cases, thereby offering a safety net for all road users.

Section 140 reflects a compassionate approach within the legal framework, recognizing the often catastrophic impact of road accidents on individuals and families and ensuring that they receive immediate financial support, regardless of the complexities involved in determining fault.

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