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.
Simplified Explanation
Section 163B of the Motor Vehicles Act provides an option for claimants to choose between different legal provisions for filing compensation claims in the case of motor vehicle accidents. This section addresses scenarios where the claimant can opt for either a no-fault compensation claim under Section 163A or a fault-based claim under other provisions of the Act, but not both.
Overview of Section 163B
This section allows claimants (victims or their legal representatives) to choose the method by which they wish to pursue compensation. However, once they opt for one type of claim, they are precluded from filing under the other provisions. The intention behind this provision is to prevent individuals from making multiple claims for the same accident, ensuring fairness and consistency in compensation.
Key Elements of Section 163B
- Option Between Two Types of Claims:
- The section gives claimants the choice to file for compensation under either:
- Section 163A (No-fault compensation, based on a structured formula): Here, the claimant does not need to prove negligence or fault. The compensation is paid according to a pre-defined formula that considers the victim’s income, age, and extent of injury or death.
- Fault-based claim under other sections of the Motor Vehicles Act: In this scenario, the claimant must prove fault or negligence on the part of the vehicle owner or driver to receive compensation.
- The section gives claimants the choice to file for compensation under either:
- Exclusive Choice:
- Once a claimant opts for a no-fault compensation claim under Section 163A, they cannot pursue a fault-based claim for the same accident under other sections of the Act, and vice versa. This means the claimant must choose only one route for seeking compensation.
- Binding on the Claimant:
- The decision to choose either type of claim is final and binding. After filing a claim under one provision, the claimant cannot file another claim for the same accident under a different provision.
- Prevents Double Recovery:
- The purpose of this section is to prevent claimants from filing multiple claims for the same accident under different sections, which could result in double recovery of compensation. It ensures that the compensation system remains fair and that claimants do not receive more than they are entitled to.
- Applicable in All Compensation Scenarios:
- Section 163B applies to all compensation claims related to motor vehicle accidents, ensuring that claimants make a conscious decision about the best method for seeking compensation, depending on their situation.
Practical Implications
- Informed Choice for Claimants: Claimants must decide whether they prefer the certainty and speed of the no-fault compensation under Section 163A, or if they want to pursue a fault-based claim, which may offer the potential for higher compensation but requires proof of negligence.
- Prevents Legal Confusion: By limiting claimants to a single claim under one provision, the law reduces confusion and potential legal disputes over multiple compensation claims for the same incident.
- Encourages Faster Compensation: The no-fault compensation option under Section 163A encourages quicker payouts, as claimants can avoid the lengthy process of proving fault. This provides relief to those who need immediate financial assistance following an accident.
- Legal Simplicity: The section simplifies the legal process by giving claimants a clear-cut choice between two compensation paths, avoiding overlapping claims and reducing the burden on courts and tribunals.
Conclusion
Section 163B of the Motor Vehicles Act provides claimants with a clear option to choose between no-fault compensation under Section 163A or a fault-based claim under other sections of the Act. However, once a claimant chooses one route, they are bound by it and cannot pursue multiple claims for the same accident. This section upholds the principle of fairness in compensation and ensures that victims or their families can access the compensation they deserve without exploiting the system or causing legal confusion. By offering this choice, the Act provides flexibility while maintaining the integrity of the claims process.
