Claims Tribunals
Section 165 of the Motor Vehicles Act, 1988 deals with claims Tribunals. A State Government may, by notification in the Official Gazette, constitute one or more Motor Accidents Claims Tribunals (hereafter in this Chapter referred to as Claims Tribunal) for such area as may be specified in the notification for the purpose of adjudicating upon claims for compensation in re The Act came into force on 01 Jul 1989.
(1) A State Government may, by notification in the Official Gazette, constitute one or more Motor Accidents Claims Tribunals (hereafter in this Chapter referred to as Claims Tribunal) for such area as may be specified in the notification for the purpose of adjudicating upon claims for compensation in respect of accidents involving the death of, or bodily injury to, persons arising out of the use of motor vehicles, or damages to any property of a third party so arising, or both.
Explanation.--For the removal of doubts, it is hereby declared that the expression "claims for compensation in respect of accidents involving the death of or bodily injury to persons arising out of the use of motor vehicles" includes claims for compensation under 1[section 164].
(2) A Claims Tribunal shall consist of such number of members as the State Government may think fit to appoint and where it consists of two or more members, one of them shall be appointed as the Chairman thereof.
(3) A person shall not be qualified for appointment as a member of a Claims Tribunal unless he--
(a) is, or has been, a Judge of a High Court, or
(b) is, or has been, a District Judge, or
(c) is qualified for appointment as a Judge of a High Court 2[or as a District Judge].
(4) Where two or more Claims Tribunals are constituted for any area, the State Government, may by general or special order, regulate the distribution of business among them.
Section 165, The Motor Vehicles Act, 1988 (Act 59 of 1988).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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S. Iyyapan vs United India Insurance Co. Ld.
Court's Decision & Legal Precedent
An insurance company cannot deny or avoid its statutory liability to pay compensation to third-party accident victims merely on the ground that the driver, although holding a valid and effective driving licence to drive a light motor vehicle, did not possess a specific endorsement to drive that particular light motor vehicle when used for commercial purposes. The driver's possession of a valid light motor vehicle licence is sufficient authority to operate any type of light motor vehicle regardless of whether it is used for personal or commercial transportation. The statutory obligation of the insurer under Section 149 of the Motor Vehicles Act, 1988 to satisfy judgments and awards in respect of third-party liability cannot be defeated on such technical distinctions between subcategories of light motor vehicles. The compulsory insurance legislation is fundamentally a social welfare measure designed to ensure that accident victims receive compensation, and all relevant provisions must be interpreted to effectuate this paramount protective purpose.
On this section: Constitution of Motor Accidents Claims Tribunal
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Premkumari vs Prahlad Dev
Court's Decision & Legal Precedent
An insurance company cannot escape liability to pay motor accident compensation merely on the ground that the driver possessed a fake or invalid driving license. The insurance company must establish that the insured (vehicle owner) committed a breach of policy conditions by negligently failing to verify a driver's license or being aware that the license was fake. A vehicle owner who verifies that a driver possesses a license that appears genuine on its face and is competent to drive has not breached any policy condition. Therefore, in such cases, the insurance company remains liable to innocent third parties, though it may be entitled to recover the amount from the insured if breach is substantially proved. The compulsory insurance scheme under the Motor Vehicles Act is fundamentally designed to protect accident victims, and this protective purpose cannot be defeated by technical grounds related to driver licensing.
On this section: Establishes Motor Accident Claims Tribunal
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Anita vs Gagan Kumar
Court's Decision & Legal Precedent
In proceedings under Section 166 of the Motor Vehicles Act, 1988, a Motor Accident Claims Tribunal is not strictly bound by the pleadings of the parties and should not dismiss a claim petition on the basis of technical errors in pleadings without considering the substantive evidence of the accident. The rules of pleadings do not strictly apply to claim petitions as the claimant is required to make an application in a form prescribed under the Act. The Tribunal should adopt a pragmatic and holistic view of the entire record, considering the prescribed form, evidence adduced, and the beneficial nature of the legislation, rather than applying hyper-technical pleading rules. Order VI CPC is consciously excluded from application to claim petitions, reflecting the legislative intent that Tribunals should not be bound by strict pleading rules.
On this section: Defines the nature of accidents for which compensation can be claimed.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… of obtaining compensation against his employer cannot now fall back upon the provisions of the 1988 Act therefor, inasmuch as the procedure laid down under both the Acts are different save and except those which are covered by Section 143 thereof. 33 . On the establishment of a Claims Tribunal in terms of Section 165 of the Motor Vehicles Act, 1988, the victim of a motor accident has a right to apply for compensation in terms of Section 166 of that Act before that Tribunal. On the establishment of the Claims Tribunal, the jurisdiction of the civil court to entertain a claim for compensation arising out of a motor accident, …
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… of obtaining compensation against his employer cannot now fall back upon the provisions of the 1988 Act therefor, inasmuch as the procedure laid down under both the Acts are different save and except those which are covered by Section 143 thereof. 33 . On the establishment of a Claims Tribunal in terms of Section 165 of the Motor Vehicles Act, 1988, the victim of a motor accident has a right to apply for compensation in terms of Section 166 of that Act before that Tribunal. On the establishment of the Claims Tribunal, the jurisdiction of the civil court to entertain a claim for compensation arising out of a motor accident, …
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… of obtaining compensation against his employer cannot now fall back upon the provisions of the 1988 Act therefor, inasmuch as the procedure laid down under both the Acts are different save and except those which are covered by Section 143 thereof. 33 . On the establishment of a Claims Tribunal in terms of Section 165 of the Motor Vehicles Act, 1988, the victim of a motor accident has a right to apply for compensation in terms of Section 166 of that Act before that Tribunal. On the establishment of the Claims Tribunal, the jurisdiction of the civil court to entertain a claim for compensation arising out of a motor accident, …
Questions about Section 165
What have the courts held on Section 165 of the Motor Vehicles Act?
S. Iyyapan vs United India Insurance Co. Ld. (01 Jul 2013) is the leading judgment on this section among those set out below: Constitution of Motor Accidents Claims Tribunal. Another 2 judgments on this section are set out below, 2 of them from the Supreme Court. They run from 2008 to 2025.
How do I find court cases under Section 165 of the Motor Vehicles Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: MV Act 165, section 165 MV Act, section 165 of the Motor Vehicles Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with S. Iyyapan vs United India Insurance Co. Ld. (01 Jul 2013).
What should I read with Section 165 of the Motor Vehicles Act, and has it changed?
Its own text turns on section 164 (Payment of compensation in case of death or grevious hurt, etc), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it.
When did Section 165 of the Motor Vehicles Act come into force?
Section 165 of the Motor Vehicles Act, cited as MV Act 165, came into force on 01 Jul 1989, having been enacted on 14 Oct 1988. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1948 words
- 88. Validation of permits for use outside region in which granted1560 words
- 51. Special provisions regarding motor vehicle subject to hire-purchase agreement, etc1199 words
- 150. Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks1102 words
- 96. Power of State Government to make rules for the purposes of this Chapter995 words
- 72. Grant of stage carriage permits868 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.