(1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorised insurer shall be liable to pay in the case of death or grievous hurt due to any accident arising out of the use of motor vehicle, a compensation, of a sum of five lakh rupees in case of death or of two and a half lakh rupees in case of grievous hurt to the legal heirs or the victim, as the case may be.
(2) In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that the death or grievous hurt in respect of which the claim has been made was due to any wrongful act or neglect or default of the owner of the vehicle or of the vehicle concerned or of any other person.
(3) Where, in respect of death or grievous hurt due to an accident arising out of the use of motor vehicle, compensation has been paid under any other law for the time being in force, such amount of compensation shall be reduced from the amount of compensation payable under this section.
Legal Commentary & Landmark Judgments: Section 164
Section 164 of the Motor Vehicles Act, 1988 (substituted by the 2019 Amendment) establishes a definitive strict liability regime awarding fixed statutory compensation of Rs. 5,00,000 for death and Rs. 2,50,000 for grievous hurt without requiring proof of negligence.
Sub-section (2) explicitly removes the burden of proof: the claimant is not required to plead or establish that the death or grievous hurt was due to any wrongful act, neglect, or default of the owner or driver of the vehicle. Under sub-section (3), if a claimant elects to receive compensation under Section 164, they are barred from claiming compensation under any other provision of the Act for that accident.
Section 164 provides a vital alternative for claimants where proof of negligence is difficult or where the victim was contributorily negligent. Under Section 164, the defense of contributory negligence is legally unavailable to the insurer. Claimants face a strategic election: they can accept the fixed statutory sum under Section 164 swiftly, or pursue full assessment of loss of dependency under Section 166.