Section 167 of The Motor Vehicle Act bars dual claim of compensation

  • Blog|Indian Acts|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 8 September, 2022
Section 167 in The Motor Vehicle Act, 1988 gives option to the claimants to seek compensation either under workers’ compensation Act, 1923 or The Motor Vehicle Act, 1988. They cannot file a claim petition under the provision of both the Acts.
There have been few cases where applicant first claimed the compensation under one act and then tried to be compensated again under another act for same mishap. One such case was filed by a miscellaneous under Karnataka High Court authority, and appealed for compensation under Section 173(1) of Motor Vehicle Act, and the Judge B. Manohar, J. held that a claimant can only seek compensation either under Employees Compensation Act, 1923 or Motor Vehicle Act, they cannot claim petition under both the provisions. The claimant was found to have claimed his compensation under Employees Compesensation act and was awarded the compensation for the death of his family in a road accident while he was proceeding on a motorcycle. Then again he was trying to claim compensation under Section 163 A of the motor vehicle act. 
Similar judgement was passed in Apex Court in case of National Insurance Company vs Masanin 2006 and noted India Insurance Company Limited vs LilithRattan case in the year 2017 (order dated 15th March 2017).
In a similar case, Justice Sarvesh Kumar Gupta suggested that appellant Dalby Lal, who already got a compensation for his road accident under Motor Vehicle Act, and approached court further seeking the compensation under workers Compensation Act, met with an accident when he had already left his office and was on his way back home. The Judge dismissed his appeal by saying under Section 167 of Motor Vehicle Act, he cannot appeal under both the Acts. Also apart from this, it is responsibility of an employee to reach his office safely and employee can be held responsible to fetch employee from his residence and ensure his safe arrival to workplace premises. This was so stated because the appellant had left his workplace at around twelve in noon and he met with accident six hours after he left his office.
Similar case came forward in case of Oriental Insurance Company Limited vs. Dyamavva & Ors in year 2012. Here Yalgurdappa B. Goudar died in a road accident after he left for his home completing his officework. The accident happened when he was riding on the pillion of a motor cycle and was hit by a tripper. He was compensated by his company an amount of INR 3,26,140/- under workers’ compensation Act, 1923. Besides his claim under workers’ compensation Act, 1923, Dyamavva Yalgurdappa, also raised a claim under section 166 of Motor vehicles act 1988 in Bagalkot and was awarded a compensation of INR 11,44,440/- But however the Motor Accident Tribunal ordered a deduction of compensation amount paid by his employer from this compensation amount stating that one could not ask for compensation under both the acts.
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