Refund in certain cases of compensation paid under section 161
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Summary
Interim compensation already paid under this Act must be refunded to the insurer if later another compensation or settlement is awarded or paid for the same death or grievous hurt, to the extent of the earlier payment. Before any court or tribunal awards compensation under another provision or law, it must check whether such interim payment was made or an application is pending; if paid it must order refund to the insurer, if pending it must forward the award particulars to the insurer.
Example
Priya is injured in a road accident and the insurer immediately pays interim compensation. Later a Tribunal awards full compensation for her grievous hurt. The Tribunal directs the person liable to refund to the insurer so much of the award as equals the interim payment, or if Priya's application for interim payment had been pending, it forwards the award particulars to the insurer.
Bare Act
Enacted text(1) The payment of compensation in respect of the death of, or grievous hurt to, any person under section 161 shall be subject to the condition that if any compensation (hereafter in this sub-section referred to as the other compensation) or other amount in lieu of or by way of satisfaction of a claim for compensation is awarded or paid in respect of such death or grievous hurt under any other provision of this Act or any other law or otherwise so much of the other compensation or other amount aforesaid as is equal to the compensation paid under section 161 shall be refunded to the insurer.
(2) Before awarding compensation in respect of an accident involving the death of, or bodily injury to, any person arising out of the use of a motor vehicle or motor vehicles under any provision of this Act (other than section 161) or any other law, the Tribunal, Court or other authority awarding such compensation shall verify as to whether in respect of such death or bodily injury compensation has already been paid under section 161 or an application for payment of compensation is pending under that section, and such Tribunal, Court or other authority shall—
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(a) if compensation has already been paid under section 161, direct the person liable to pay the compensation awarded by it to refund to the insurer, so much thereof as is required to be refunded in accordance with the provisions of sub-section (1);
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(b) if an application for payment of compensation is pending under section 161 forward the particulars as to the compensation awarded by it to the insurer.
Explanation
For the purpose of this sub-section, an application for compensation under section 161 shall be deemed to be pending—
(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.
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