All India Bar Examination (AIBE) 20 (XX) Previous Year Question Papers with Answers

Correct Answer: B - Fifty Thousand Rupees (₹50,000)

The correct answer is Option B - Fifty Thousand Rupees (₹50,000).

Under Section 140 of the Motor Vehicles Act, 1988, in case of death caused by a motor vehicle accident, the fixed compensation payable under the no-fault liability principle is ₹50,000 (Fifty Thousand Rupees).

WHAT IS NO-FAULT LIABILITY UNDER MOTOR VEHICLES ACT, 1988?

No-fault liability, as defined under Section 140 of the Motor Vehicles Act, 1988, means that the victim or legal heir is entitled to receive a fixed amount of compensation without proving any negligence or fault on the part of the driver or owner of the motor vehicle.

This provision falls under Chapter X of the Motor Vehicles Act, 1988, which deals with liability without fault in certain cases.

Fixed Compensation Under Section 140 – Motor Vehicles Act 1988

KEY LEGAL POINTS – SECTION 140, MOTOR VEHICLES ACT 1988

1. Compensation is payable without proving negligence or wrongful act
2. The claim lies against the owner of the motor vehicle
3. This compensation is available in addition to any other legal remedy
4. It provides quick and immediate relief to accident victims
5. It is also referred to as compensation on "Structured Formula Basis"
6. Covered under Chapter X of the Motor Vehicles Act, 1988

RELATED LEGAL PROVISIONS – MOTOR VEHICLES ACT, 1988

• Section 140 – No Fault Liability
• Section 141 – Provisions as to Other Right to Claim Compensation
• Section 163A – Special provisions as to payment of compensation on structured formula basis
• Section 166 – Application for compensation before Motor Accident Claims Tribunal (MACT)