Question

According to the Motor Vehicles Act, 1988, what is the fixed amount of compensation payable in the event of death caused by a motor vehicle accident under no-fault liability?

• A. Twenty-five thousand rupees
• B. Fifty thousand rupees
• C. One lakh rupees
• D. Seventy-five thousand rupees

Hint:

No-fault liability ensures quick compensation without proving negligence.

Answer 1

The Correct Option is C

Step 1: Understanding no-fault liability.
Under Section 140 of the Motor Vehicles Act, 1988, compensation is fixed irrespective of negligence.
Step 2: Fixed compensation amount.
For death, the fixed compensation under no-fault liability was revised to one lakh rupees.
Step 3: Conclusion.
Thus, the payable amount in such cases is one lakh rupees.