In Brief
A deceased driver borrowed a motorcycle and was struck by another negligently-driven motorcycle. His heirs sought no-fault compensation under Section 163A of the Motor Vehicles Act against the owner and insurer of the borrowed vehicle. The Supreme Court held that since the deceased driver stepped into the shoes of the vehicle owner, he was not a 'third party' for Section 163A purposes, and the claim against the borrowed vehicle's insurer was not maintainable. The heirs should have claimed against the negligent vehicle's insurer instead. The Court partly allowed the appeal and awarded Rs. 1 lakh—the personal accident coverage under the insurance policy—rather than the Rs. 3.67 lakh awarded by the trial court.
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