In Brief
In this case, the heirs of Chotelal, who died in a motorcycle accident while driving a borrowed vehicle, claimed compensation under Section 163A of the Motor Vehicles Act against the vehicle owner's insurance company. The Supreme Court held that because the deceased borrowed the vehicle and stepped into the shoes of the owner, he was not a third party to that vehicle. Section 163A provides no-fault compensation only to third parties. The claim should have been filed against the negligent driver of the other motorcycle. The Court affirmed the deceased's entitlement to Rs.1 lakh under the insurance contract's personal accident clause but not under the no-fault liability scheme. The appeal was partly allowed with 7.5% interest from the claim date.
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