Chapter 11 Insurance of Motor Vehicles Against Third Party Risks
Section 162: Refund in certain cases of compensation paid under section 161
a) 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.
b) 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—
- 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);
- 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 purpose of this sub-section, an application for compensation under section 161 shall be deemed to be pending— - if such application has been rejected, till the date
of the rejection of the application, and
- in any other case, till the date of payment of
compensation in pursuance of the application.