Motor Vehicles Act Section 163 — Refund in certain cases of compensation paid under section 161
CHAPTER IX MOTOR VEHICLES TEMPORARILY LEAVING OR VISITING INDIA
Civil
Summary
Sub-section (1) states that when compensation is paid under section 161 for a person's death or grievous hurt, it is paid on the condition that if any other compensation or amount is later awarded or paid for that same death or grievous hurt under any other part of this Act, any other law, or in any other way, then the portion of that other compensation or amount equal to what was paid under section 161 must be refunded to the insurer.
Sub-section (2) requires that before any Claims Tribunal, court, or other authority awards compensation for an accident involving death or bodily injury from a motor vehicle under any provision of this Act other than section 161, or under any other law, it must check whether compensation has already been paid under section 161 for that death or injury, or whether an application for such payment is still pending.
Under clause (a) of sub-section (2), if compensation has already been paid under section 161, the Tribunal, court, or authority must direct the person liable to pay the newly awarded compensation to refund to the insurer the amount that needs to be refunded as per sub-section (1).
Under clause (b) of sub-section (2), if an application for compensation under section 161 is still pending, the Tribunal, court, or authority must forward the details of the compensation it has awarded to the insurer.
The Explanation clarifies when an application under section 161 is considered pending for the purpose of sub-section (2). If the application has been rejected, it is deemed pending until the date of rejection. In any other case, it is deemed pending until the date the compensation is actually paid based on that application.
Official Text
(1) The payment of compensation in respect of the death of, or grievous hurt to, any person under section 161 shall be subject to the condition that if any compensation (hereafter in this sub-section referred to as the other compensation) or other amount in lieu of or by way of satisfaction of a claim for compensation is awarded or paid in respect of such death or grievous hurt under any other provision of this Act or any other law for the time being in force or otherwise, so much of the other compensation or other amount aforesaid as is equal to the compensation paid under section 161, shall be refunded to the insurer.
(2) Before awarding compensation in respect of an accident involving the death of, or bodily injury to, any person arising out of the use of a motor vehicle under any provision of this Act other than section 161 or any other law for the time being in force, the Claims Tribunal, court or other authority awarding such compensation shall verify as to whether in respect of such death or bodily injury compensation has already been paid under section 161 or an application for payment of compensation is pending under that section, and such Tribunal, court or other authority shall—
(a) if compensation has already been paid under section 161, direct the person liable to pay the compensation awarded by it to refund to the insurer, so much thereof as is required to be refunded in accordance with the provisions of sub-section (1);
(b) if an application for payment of compensation is pending under section 161 forward the particulars as to the compensation awarded by it to the insurer. Explanation.—For the purpose of this sub-section, an application for compensation under section 161 shall be deemed to be pending—
(i) if such application has been rejected, till the date of the rejection of the application; and
(ii) in any other case, till the date of payment of compensation in pursuance of the application.