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MVA, 1988
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MVAChapter XISection 163
Section163

Scheme for payment of compensation in case of hit and run motor accidents

AI Assist

Summary

Central Government can notify a scheme for paying compensation in hit-and-run motor accidents, specifying administration (to be handled by the General Insurance Corporation), application form, time limits, officers and procedures. The scheme may punish breaches (up to three months imprisonment or a fine up to Rs 500 or both), allow delegation with prior written approval, and be given limited retrospective effect so long as no one is prejudiced.

Example

Priya is hit by a car whose driver flees. She applies within the time limit to the officer named in the notified scheme; the General Insurance Corporation will administer and decide her claim. If an officer or person breaks the scheme rules, that breach can attract up to three months imprisonment or a fine up to Rs 500.

Bare Act

Enacted text

(1) The Central Government may, by notification in the Official Gazette, make a scheme1 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 Government, 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 (4 of 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.

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XI

Chapter XI

Insurance of Motor Vehicles Against Third Party Risks

In this chapter

  • 145Definitions
  • 146Necessity for insurance against third party risk
  • 147Requirements of policies and limits of liability
  • 148Validity of policies of insurance issued in reciprocating countries
  • 149Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks
  • 150Rights of third parties against insurers on insolvency of the insured
  • 151Duty to give information as to insurance
  • 152Settlement between insurers and insured persons
  • 153Saving in respect of sections 150, 151 and 152
  • 154Insolvency of insured persons not to affect liability of insured or claims by third parties
  • 155Effect of death on certain causes of action
  • 156Effect of certificate of insurance
  • 157Transfer of certificate of insurance
  • 158Production of certain certificates, license and permit in certain cases
  • 159Production of certificate of Insurance on application for authority to use vehicle
  • 160Duty to furnish particulars of vehicle involved in accident
  • 161Special provisions as to compensation in case of hit and run motor accident
  • 162Refund in certain cases of compensation paid under section 161
  • 163Scheme for payment of compensation in case of hit and run motor accidents
  • 163ASpecial provisions as to payment of compensation on structured formula basis
  • 163BOption to file claim in certain cases
  • 164Power of Central Government to make rules
Previous · Section 162Refund in certain cases of compensation paid under section 161Next · Section 163ASpecial provisions as to payment of compensation on structured formula basis