The Motor Vehicles Act, 1988
172. Award of
compensatory costs in certain cases.
- 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--
- 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
- 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.
- No Claims Tribunal shall
pass an order for special costs under sub-section (1) for any amount exceeding
one thousand rupees.
- 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).
- Any amount awarded by
way of compensation under this section in respect of any mis-representation,
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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