Central · Act 59 of 1988

Section 163 — Refund in certain cases of compensation paid under section 161.

The Motor Vehicles Act, 1988

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1[Refund in certain cases of compensation paid under section 161. -- (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.]



Source footnotes

1. Subs. by Act 32 of 2019, s. 51, for 'CHAPTER XI' (w.e.f. 1-9-2019).

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Next · Section 164Payment of compensation in case of death or grevious hurt, etc. →All sections / सभी धाराएँThe Motor Vehicles Act, 1988 →
More sections of this actSection 1 · Short title, extent and commencement.Section 2 · Definitions.Section 2A · e-cart and e-rickshaw.Section 2B · Promotion of innovationSection 3 · Necessity for driving licence.Section 4 · Age limit in connection with driving of motor vehicles.Section 5 · Responsibility of owners of motor vehicles for contravention of sections 3 and 4.Section 6 · Restrictions on the holding of driving licences.
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India Code, Government of India. Text fetched 10 Oct 2026. Source metadata reports last modification: 2025-11-07. Check the linked official text and subsequent notifications when applying a provision.

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