Road accident victims don't need to prove fault for compensation: Punjab and Haryana High Court

​The Punjab and Haryana High Court has clarified that compensation under Section 163A of the Motor Vehicles Act is based on a "no-fault liability" principle, meaning victims of road accidents do not need to prove negligence to receive compensation.

The ruling by the Bench of Justice Sureshwar Thakur and Justice Kirti Singh came in a case involving a road accident caused by a tractor left parked in the middle of a road without warning signs.

The court examined key provisions of the law to determine how compensation should be calculated. It held that a claim under Section 163A did not require the victim to prove negligence or fault of the “offending” vehicle’s driver.

The Bench made it clear that amount to be awarded was determined using a structured formula given in the second schedule of the Act. It was different from other motor accident claims.

The "multiplier method" used in other claims to assess long-term losses was not necessary under this Section. The court further held that the vehicle owner was automatically responsible for paying compensation, as Section 140 of the Act made it mandatory for the owner to bear liability on a no-fault basis.

Rejecting the insurance company’s objections, the court ruled that medical expenses could not be challenged if they were backed by valid medical bills, as the claim was based on documentary evidence. It also observed that if compensation was already granted under the "no-fault" principle, it must be adjusted against any additional claim made under different Sections of the Act.

Applying the legal principles, the high court upheld the accident victim’s claim ruling. The insurance company’s objection to medical expenses was rejected, as they were supported by actual medical bills. The court asserted that the Motor Vehicles Act was enacted to ensure fair and just compensation for accident victims, and the law must be applied in a way that upholds this objective.