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Report No. 85

VIII. Limitations on Liability without Fault

3.48. Limitations recommended in cases of no fault liability.-

While, for the reasons given above, we contemplate "no fault" liability, it is in our opinion, also necessary to provide for limiting the quantum of the liability if fault is dispensed with (i.e. if the liability rests purely on the basis of risk). This is desirable in order to prevent a steep rise in premium, and also to leave some scope for watching the working of the proposed reform. It may be noted that such a limitation forms part of the points suggested for reform by the Supreme Court1 in one of its Judgments2 on the subject.

1. Bishuan Devi v. Sirbaksh Singh, AIR 1979 SC 1862 (1866, 1867), para. 21.

2. Para. 3.29, supra.



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