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Section 167: Option regarding claims for compensation in certain cases

Motor Vehicles Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1988
Section 166 All 217 Sections of Motor Vehicles Act Section 168

Legal Commentary & Landmark Judgments: Section 167

Section 167 of the Motor Vehicles Act, 1988 codifies the 'doctrine of election', providing that an employee or dependent entitled to compensation under both the Motor Vehicles Act and the Employee's Compensation Act must elect one forum.

  • Core Legal Standard: Section 167 prevents double recovery while preserving choice of forum for work-related vehicular accidents.
  • Operational Mechanism: It provides that where the death of, or bodily injury to, any person gives rise to a claim for compensation under this Act and also under the Employee's Compensation Act, 1923 (formerly Workmen's Compensation Act), the claimant may apply under either of those Acts, but cannot pursue claims under both.

This statutory election is absolute: once a claimant consciously exercises their option and initiates proceedings before the Commissioner for Employee's Compensation or the Motor Accidents Claims Tribunal, they cannot abandon or pursue a parallel claim before the alternative forum. However, an employer's suo motu deposit under the Employee's Compensation Act without the claimant's application does not extinguish the right to choose the MACT.

Key Landmark Precedents:
  • National Insurance Co. Ltd. v. Mastan (2006) 2 SCC 641: The Supreme Court held that the doctrine of election is an absolute statutory bar under Section 167; a claimant who has exercised their option to file a claim under the Workmen's Compensation Act cannot subsequently seek compensation under the Motor Vehicles Act.
  • Oriental Insurance Co. Ltd. v. Dyamavva (2013) 9 SCC 406: Held that where the employer deposited compensation suo motu before the Workmen's Compensation Commissioner without an application by the deceased's heirs, it does not constitute an 'election' by the claimants; they remain entitled to maintain their claim under Section 166.
Legal Commentary:

Litigants must carefully weigh forum election under Section 167. While the Employee's Compensation Act provides a rigid statutory formula based on wages and age factors without needing to prove driver negligence, the MACT under Section 166 allows significantly higher awards encompassing future prospects, conventional heads, pain and suffering, and loss of consortium. For higher-income drivers or commercial crew, electing the MACT under Section 166 usually yields superior compensation.

Section 166 All 217 Sections of Motor Vehicles Act Section 168