1 2025:CGHC:28081 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MAC No. 1185 of 2019 1 - United India Insurance Company Limited, Through Its Divisional Manager, Divisional Office – Ist Floor, Krishna Complex, Kutchery Chowk, Raipur District - Raipur Chhattisgarh. --- Appellant versus 1 - Smt. Khristina Lal Wd/o Late Vijay Mathews Aged About 49 Years 2 - Abhishek Lal S/o Late Vijay Mathews Aged About 27 Years 3 - Ruchilal S/o Late Vijay Mathews, Aged About 25 Years All are R/o Ward No. 18, Sangam Nagar, Belakachhar, Balco, Tahsil And District - Korba Chhattisgarh. 4 - M/s Satya Trunking Private Limited, G. E. Road, Tatibandh, Raipur, General Manager Kamal Kumar Soni S/o - Ramcharan Soni, R/o - Mander Nivas, Shanti Vihar Coloney, Gangniya Tahsil And District - Raipur Chhattisgarh. --- Respondents For Appellant : Mr. Dashrath Gupta, Advocate For Respondents No.1 to 3 : Mr. Shishir Dixit, Advocate Hon'ble Shri Justice Parth Prateem Sahu Order On Board 26/06/2025 1. Appellant/Insurance Company has filed this appeal under Section 173 of the Motor Vehicles Act, 1988 (for short ‘the Act of 1988’) challenging the quantum of impugned award dated 12.03.2019, passed in Claim Case No. 41 of 2018, whereby the learned Motor Accident Claims BALRAM PRASAD DEWANGAN Digitally signed by BALRAM PRASAD DEWANGAN 2 Tribunal, Kurud, District – Dhamtari has awarded Rs.9,45,500/- as compensation in a death case. 2. Facts relevant for disposal of this appeal are that claimants/respondents No.1 to 3 filed an application under Section 163A of the Act of 1988 claiming total compensation of Rs.16,30,000/- under different heads on account of the death of Vijay Mathews, who died in the road accident pleading therein that on 11.04.2016, deceased Vijay Mathews came to village Megha driving the pickup vehicle no. CG 04 JE-0143 himself. On the way, due to sudden mechanical fault in the vehicle near village Mandraud turn, it met met with an accident, in which, driver Vijay Mathews died. 3. The non-applicants No1 filed his reply to the claim application and pleaded that deceased Vijay Mathews was having valid driving license and the the offending vehicle was insured with non-applicant No.2. Non-applicant No.2/Insurance Company also filed reply to the claim application and pleaded that there was no mechanical fault in the offending vehicle on the date of accident and it was being driven in rash and negligent manner by the deceased and met with an accident. The deceased was not having any valid driving license to drive the vehicle. 4. The learned Claims Tribunal after appreciation of the pleadings and the evidence brought on record by respective parties, allowed the claim application in part and awarded total compensation of Rs.9,45,500/-. 3 5. Learned counsel for appellant/Insurance Company submits that this appeal is filed solely on the ground that the learned Claims Tribunal erred in awarding Rs.9,45,000/- as total compensation instead of fixed amount of Rs.5,00,000/- over looking the application seeking compensation was filed under the provisions of Section 163A of the Act, 1988. 6. Learned counsel for the respondent/claimant would submit that the object of the motor vehicle is to award just and fair compensation and accordingly, learned Claims Tribunal is justified in awarding Rs.9,45,500/- as total compensation in the facts of the case. He however, do not dispute the submission of learned counsel for the appellant that application was filed under the provisions of Section 163-A of the Act, 1988. 7. I have heard learned counsel for the parties and perused the documents placed record. 8. Perusal of the record would show that claimants have filed an application seeking compensation under the provisions Section 163-A of the Act, 1988. Perusal of the claim application would show that deceased Vijay Mathews while driving the pickup vehicle bearing CG.- 04-JE-0143 met with an accident and succumbed to the motor accidental injuries. Provisions under Section 163-A of the Act, 1988 is special provision under pre- amended Motor Vehicle Act, 1988, which reads as under :- “Section 163A. Special provisions as to payment of compensation on structured formula basis.— (1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having 4 the force of law, the owner of the motor vehicle of 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.” 9. From the heading of the provisions itself, it is apparent that provision under Section 163 A is special provision for payment of compensation on structured formula basis. The claimants filed an application under the aforementioned provisions is/are not required to prove the negligence on the part of the deceased or injured. 10. The second scheduled under the provision of Section 163-A of the Act, 1988 came to be amended vide order dated 22.05.2018. In the amended provisions for fatal accident, the compensation payable in death case has been fixed as Rs.5,00,000/-. Further the Motor Vehicle Act came to be amended w.e.f. 09.08.2019 wherein the provisions of Section 163A was omitted and benefit of Section 163A has been brought in under Section 164 of the Act, 1988. Section 164 of the Act, 1988 is extracted below for ready reference :- 5 “Section 164. Payment of compensation in case of death or grevious hurt, etc. -- (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 grievous hurt due to any accident arising out of the use of motor vehicle, a compensation, of a sum of five lakh rupees in case of death or of two and a half lakh rupees in case of grievous hurt to the legal heirs or the victim, as the case may be. (2) In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that the death or grievous hurt 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 of the vehicle concerned or of any other person. (3) Where, in respect of death or grievous hurt due to an accident arising out of the use of motor vehicle, compensation has been paid under any other law for the time being in force, such amount of compensation shall be reduced from the amount of compensation payable under this section.” 11. In the facts of the case, where the claimants seeking compensation against the death of driver of the vehicle by filing application U/s. 163A of the Act, 1988 against the owner and insurer of the said vehicle without proving the negligence of other person then the provisions of Section 163A of the Act, 1988 for awarding the amount of compensation have strict application. The claimants would be entitled for the fixed compensation as provided under the afore referred provision. Learned Claims Tribunal erred in computing the amount of compensation by applying the multiplier system, which is not permissible in law under the provisions of Section 163-A of the Act, 1988. 12. For the forgoing discussions the amount of compensation awarded by the learned Claims Tribunal is required to be reduced to Rs.5,00,000/- 6 as under the provision of Section 163-A of the Act, 1988, the maximum amount is fixed as Rs.5,00,000/-. 13. Now the claimants will be entitled for total sum of Rs.5,00,000/-. The aforementioned amount of compensation shall carry interest at the rate of 7.5% from the date of filing of the claim application till its realization. Other conditions of the award shall remain intact. Sd/- (Parth Prateem Sahu) Judge Balram