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22. In the scheme of Act, 1988, Chapter X, by virtue of Section 140, contemplates earliest relief to a victim by awarding a fixed amount of compensation, if death or permanent disability has resulted from an accident arising out of use of a motor vehicle and for this purpose there is no requirement of pleading or establishing that death or permanent disablement was due to any wrongful act, neglect or default of owner of vehicle.

23. Section 141 declares that right to claim compensation under Section 140 is in addition to any other right to claim compensation on the principle of "fault liability" but it only excludes right to claim compensation under Section 163A. In other words, if a compensation is claimed under "no fault liability" then either it can be an application under Sections 140 or 163A and not both. This is what has also been clarified in The Oriental Insurance Co. Ltd. etc. vs. Hansrajbhai V.Kodala and others, 2001(5) SCC 175.

27. Initially when Act, 1988 was enacted there was no provision for compensation in case of "no fault liability" based on a structured formula which gives a scope for determination of compensation. By Act 54 of 1994, and w.e.f. 14.11.1994, Section 163A was inserted making special provision as to payment of compensation on structured formula. This Section commences with a "non-obstente" clause and overrides provisions of Act, 1988 or any other law for the time being in force or instrument having force of law. It says that owner of vehicle or authorized Insurer shall be liable to pay compensation as indicated in Second Schedule in case of death, to legal heirs and in case of permanent disablement, to the victim, as the case may be. Explanation to Section 163A(1) incorporates by Reference, meaning of "permanent disability" as provided in Act, 1923 to the word "permanent disablement" used under Section 163A of Act, 1988. For claiming compensation under Section 163A(1) claimant is not required to plead or establish that accident occurred due to any wrongful act, neglect or default on the part of owner of vehicle concern or of any other person.

28. There is a note appended to Second Schedule of Act, 1988, raising a legal fiction stating that injuries deemed to result in permanent total disablement/ permanent partial disablement and percentage of loss of earning capacity shall be as per Schedule First under Act, 1923. In para 5 of Second Schedule of Act, 1988, provisions of First Schedule of Act, 1923 have been incorporated by reference. To attract Section 163A and to claim compensation thereunder, one has to establish factum of accident, age of deceased/ injured, as the case may be and his/her income. Broadly, these are the only relevant material factors to be brought before Tribunal for determining compensation under Section 163A.

37. Section 166 contemplates application for compensation which is commonly called as "claim on fault liability". The inter relationship of Sections 163A and 166 was considered in Deepal Girishbhai Soni and others vs. United India Insurance Co. Ltd. 2004(5) SCC 385. Court said that Section 163A is for grant of immediate relief and award made thereunder would be in full and final settlement of claim. It is not interim in nature. Amount of compensation payable thereunder is not to be altered or varied in any other proceedings unlike the amount paid under Section 140 which can be set off against a higher compensation.