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The Motor Vehicles Act, 1988

172. Award of compensatory costs in certain cases.

  1. 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--
  1. 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
  2. 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.
  1. No Claims Tribunal shall pass an order for special costs under sub-section (1) for any amount exceeding one thousand rupees.
  2. 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).
  3. 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.

Motor Vehicles Act, 1988 Back

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