Borrower of a vehicle stepping into owner's shoes cannot claim compensation as a third party under Section 163-A.

On 19.04.2017, one Mariappan was driving a Mahindra Scorpio belonging to the first respondent (Gumaran), with his mother as a passenger.

Near Aandiyur, the vehicle collided with an oncoming two-wheeler, causing Mariappan to lose control and crash into a tamarind tree.

He succumbed to his injuries on 03.05.2017.

His legal heirs filed a claim under Section 163-A of the Motor Vehicles Act (MVA), 1988, claiming "no-fault liability".

The Tribunal awarded Rs. 4,36,160/-

Whether the legal heirs of a person who borrowed a vehicle from the owner and met with an accident can maintain a claim under Section 163-A of the Motor Vehicles Act against the insurer of the said vehicle.

Whether the borrower of a vehicle steps into the shoes of the owner, thereby precluding them from being treated as a "third party" for the purposes of compensation.

Section 163-A of the Motor Vehicles Act, 1988 (Special provisions as to payment of compensation on structured formula basis).

The principle that a borrower of a vehicle steps into the shoes of the owner.

The court examined whether the deceased, who was driving the vehicle after borrowing it from the owner, could be considered a "third party" under the insurance policy.

The court applied the doctrine that when a person borrows a vehicle, they step into the shoes of the owner; since an owner cannot claim compensation against their own insurance company as a third party, the borrower (or their heirs) is similarly barred.

The appeal by the insurance company was allowed, and the award of the Tribunal was set aside or modified based on the determination that the claim under Section 163-A was not maintainable.