Motor Vehicles Act: Section 92 – Voidance of contracts restrictive of liability

Any contract for the conveyance of a passenger in a stage carriage or contract carriage, in respect of which a permit has been issued under this Chapter, shall, so far as it purports to negative or restrict the liability of any person in respect of any claim made against that person in respect of the death of, or bodily injury to, the passenger while being carried in, entering, or alighting from the vehicle, or purports to impose any conditions with respect to the enforcement of any such liability, be void.

Simplified Explanation

Section 92 of the Motor Vehicles Act addresses the legal standing of contracts that attempt to limit or restrict the liability of vehicle owners or operators, especially concerning any loss or damage caused by the vehicle. This provision plays a crucial role in protecting the rights of individuals who might suffer harm or loss due to the operation of motor vehicles.

Key Aspects of Section 92

  • Prohibition of Restrictive Clauses: Contracts that include clauses exempting vehicle owners or operators from liability for harm or damage caused by their vehicles are generally deemed void. This means that such clauses have no legal effect and cannot be enforced in court.
  • Scope of Liability: The aim is to ensure that vehicle owners and operators cannot contractually absolve themselves from responsibility for damages or injuries caused by their negligence or the negligence of their employees. This applies particularly to commercial vehicle operations, where the potential for damage or injury can be significant.
  • Public Policy Consideration: This section is grounded in public policy, emphasizing the importance of accountability and safety in the transportation sector. It reflects the principle that one cannot contract out of liability for harm caused to others, especially when public safety is at stake.
  • Enforcement of Liability: Should an accident occur resulting in damage or injury, vehicle owners or operators cannot rely on contractual terms that limit their liability to escape or reduce their responsibility. They remain legally liable for compensating the affected parties.
  • Insurance Contracts: While this section primarily targets contracts that limit liability for negligence, it also influences how insurance contracts are structured, ensuring that insurance coverage reflects the true extent of potential liabilities without unjust restrictions.

Impact on Stakeholders

  • For Vehicle Owners and Operators: They must ensure that their contracts, especially those involving public and commercial transport services, do not include clauses that attempt to limit their liability for damages or injuries. Compliance with this regulation is crucial to avoid legal challenges and potential penalties.
  • For Consumers and the Public: This provision protects individuals from being deprived of rightful compensation for injuries or damages caused by motor vehicles. It assures the public that they can seek and possibly obtain compensation regardless of any contractual terms to the contrary.
  • For Legal Practitioners: It provides a clear basis for challenging any contract terms that might limit liability in cases of vehicle-induced damage or injuries, simplifying legal processes and enhancing consumer protection.

Section 92 of the Motor Vehicles Act underscores the responsibility of vehicle owners and operators to maintain high safety standards and ensures that they cannot evade accountability through restrictive contractual clauses. This enhances the integrity of transport operations and reinforces the legal framework that safeguards public interests on the roads.

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