#Section 163-A

The Madhya Pradesh High Court has ruled that claimants may amend their motor accident compensation petition from a fault-based claim under Section 166 to a no-fault claim under Section 163-A even after evidence closure and during final arguments. This reinforces the welfare-oriented purpose of the Motor Vehicles Act, ensuring victims’ families are not penalized for technical pleading errors at the last stage of litigation.

Madhya Pradesh High Court rules that a borrower of a vehicle is deemed an 'owner' under Section 163-A of the Motor Vehicles Act, entitling survivors to Rs. 1,00,000 compensation with 6% interest from the filing date. The ruling clarifies insurance liability extends to borrowers even in the absence of formal ownership transfer, reinforcing no-fault liability protections for accident victims.

Bombay HC Nagpur Bench rules that compensation under Section 163-A MV Act must strictly adhere to the Second Schedule, irrespective of fault or FIR status. The judgment overturns tribunal discretion, reinforcing no-fault liability for motor accident claims and binding insurers to statutory compensation norms.

The Punjab and Haryana High Court ruled that a person driving a borrowed vehicle cannot claim statutory no-fault compensation under Section 163-A or Section 164 of the Motor Vehicles Act, as they are not considered third parties. Only the contractual personal accident cover of ₹1,00,000 is payable, clarifying that statutory benefits extend only to true third-party victims, not those in privity with the vehicle owner.

The Bombay High Court reaffirmed that under Section 163-A of the Motor Vehicles Act, insurers cannot evade liability by alleging victim negligence. Compensation is determined solely by the Second Schedule, making this a no-fault liability regime. This ruling reinforces the absolute obligation of insurers to pay structured compensation regardless of contributory factors.

Madhya Pradesh High Court holds that enhanced compensation under Section 164 MV Act applies only prospectively; accidents prior to 2022 amendment not entitled to revised rates.

Punjab & Haryana High Court holds that Section 163-A mandates full compensation without apportioning liability to unimpleaded vehicles, reinforcing no-fault liability under Motor Vehicles Act.