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MVA 1988 (Amended 2019)ORIGINALChapter VI
Section 140
Liability to Pay Compensation in Certain Cases on the Principle of No Fault
Special Provisions Relating to Motor Vehicles
Fine: N/ACompoundable: N/AEndorsement: No
BARE ACT PROVISION
Legal Text
(1) Where death or permanent disablement of any person has resulted from an accident arising out of the use of a motor vehicle or motor vehicles, the owner of the vehicle shall, or, as the case may be, the owners of the vehicles shall, jointly and severally, be liable to pay compensation in respect of such death or disablement in accordance with the provisions of this section. (2) The amount of compensation which shall be payable under this section shall be a fixed sum of fifty thousand rupees in respect of death of any person and twelve thousand and five hundred rupees in respect of the permanent disablement of any person.
Simplified Explanation
Section 140 introduced a revolutionary concept into Indian accident law — no-fault liability. Under traditional tort law, a victim must prove negligence to get compensation. Section 140 creates a strict liability compensation scheme: if death or permanent disability results from a motor vehicle accident, the vehicle owner must pay a fixed amount regardless of fault, negligence, or contributory negligence. The compensation is modest — ₹50,000 for death, ₹25,000 for permanent disability (these amounts, set in the original Act, have not been updated by the 2019 Amendment — a significant policy gap). These amounts are payable by the owner and insurer without any contest on the merits — they are minimum guaranteed compensation. The victim or their representative can additionally claim full compensation under Section 166 (fault-based) before the MACT, with the Section 140 amount credited against any final award. The no-fault provision ensures immediate minimal compensation without waiting for the full MACT process (which can take years).
Historical Context
The no-fault liability concept was introduced in India specifically to address the extreme inequality between accident victims (often poor pedestrians or cyclists) and vehicle owners. The principle that the person who introduces risk (the vehicle) onto public roads must bear minimum responsibility regardless of fault reflects a strict liability philosophy consistent with international accident compensation models.Critical Changes
Amounts (₹50,000 and ₹25,000) have NOT been increased since original enactment — widely regarded as inadequately low.
No-fault claim processed by MACT under Section 140 read with Section 163A.
Insurer bears the no-fault liability — vehicle owner not personally exposed if insured.
Practical Scenarios
"A pedestrian killed by a car whose driver was not at fault — Section 140 guarantees ₹50,000 to the family, regardless of fault."
"A person permanently disabled in an accident — entitled to ₹25,000 no-fault compensation, plus full fault-based compensation claim under Section 166."
Common Queries
₹50,000 for death and ₹25,000 for permanent disability — these fixed amounts are payable by the vehicle owner/insurer without any need to prove fault or negligence. These amounts are payable immediately without contest.
Yes — Section 140 provides minimum guaranteed compensation. Victims can additionally claim full compensation (based on income, loss of dependency, medical expenses, etc.) under Section 166 before the MACT. The Section 140 amount received is deducted from the final full compensation award.