(1) Any Claims Tribunal adjudicating upon any claim for compensation under this Act, may in any case where it is satisfied for reasons to be recorded by it in writing that--
(a) the policy of insurance is void on the ground that it was obtained by representation of fact which was false in any material particular, or
(b) any party or insurer has put forward a false or vexatious claim or defence,
such Tribunal may make an order for the payment, by the party who is guilty of mis-representation or by whom such claim or defence has been put forward of special costs by way of compensation to the insurer or, as the case may be, to the party against whom such claim or defence has been put forward.
(2) No Claims Tribunal shall pass an order for special costs under sub-section (1) for any amount exceeding one thousand rupees.
(3) No person or insurer against whom an order has been made under this section shall, by reason thereof be exempted from any criminal liability in respect of such mis-representation, claim or defence as is referred to in sub-section (1).
(4) Any amount awarded by way of compensation under this section in respect of any misrepresentation, claim or defence, shall be taken into account in any subsequent suit for damages for compensation in respect of such mis-representation, claim or defence.
(a) the policy of insurance is void on the ground that it was obtained by representation of fact which was false in any material particular, or
(b) any party or insurer has put forward a false or vexatious claim or defence,
such Tribunal may make an order for the payment, by the party who is guilty of mis-representation or by whom such claim or defence has been put forward of special costs by way of compensation to the insurer or, as the case may be, to the party against whom such claim or defence has been put forward.
(2) No Claims Tribunal shall pass an order for special costs under sub-section (1) for any amount exceeding one thousand rupees.
(3) No person or insurer against whom an order has been made under this section shall, by reason thereof be exempted from any criminal liability in respect of such mis-representation, claim or defence as is referred to in sub-section (1).
(4) Any amount awarded by way of compensation under this section in respect of any misrepresentation, claim or defence, shall be taken into account in any subsequent suit for damages for compensation in respect of such mis-representation, claim or defence.
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Section 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.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.