Special provisions as to payment of compensation on structured formula basis
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Summary
Owner or authorised insurer must pay fixed compensation under the Second Schedule when death or permanent disablement results from use of a motor vehicle. The payment goes to the victim or the legal heirs. Claimants do not have to prove any wrongful act, neglect or default by the owner or any other person to receive this compensation.
Example
Ravi is killed when a motor vehicle hits him on the road. His legal heirs can claim the fixed compensation listed in the Second Schedule from the vehicle owner or the authorised insurer. They do not need to prove any negligence by the owner to receive the payment.
Bare Act
Enacted text(1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorised insurer shall be liable to pay in the case of death or permanent disablement due to accident arising out of the use of motor vehicle, compensation, as indicated in the Second Schedule, to the legal heirs or the victim, as the case may be.
Explanation
For the purposes of this sub-section, “permanent disability” shall have the same meaning and extent as in the Workmen’s Compensation Act, 1923 (8 of 1923).
(2) In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act or neglect or default of the owner of the vehicle or vehicles concerned or of any other person.
(3) The Central Government may, keeping in view the cost of living by notification in the Official Gazette, from time to time amend the Second Schedule.
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