Section 162 — Refund in certain cases of compensation paid under section 161.

162. 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 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 or motor vehicles under any provision of this Act 

(other than section 161) or any other law, the 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); 

                                                           
1. Subs. by Act 54 of 1994, s. 50, for “eight thousand and five hundred rupees” (w.e.f. 14-11-1994). 

2. Subs. by s. 50, ibid., for “two thousand rupees” (w.e.f. 14-11-1994). 



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(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 purposes 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.