163. Refund in certain cases of compensation paid under section 161. —
(1) The payment of
compensation in respect of the death of, or grievous hurt to, any person under section 161 shall be subject
to the condition that if any compensation (hereafter in this sub-section referred to as the other
compensation) or other amount in lieu of or by way of satisfaction of a claim for compensation is
awarded or paid in respect of such death or grievous hurt under any other provision of this Act or any
other law for the time being in force or otherwise, so much of the other compensation or other amount
aforesaid as is equal to the compensation paid under section 161, shall be refunded to the insurer.
(2) Before awarding compensation in respect of an accident involving the death of, or bodily injury
to, any person arising out of the use of a motor vehicle under any provision of this Act other than
section 161 or any other law for the time being in force, the Claims Tribunal, court or other authority
awarding such compensation shall verify as to whether in respect of such death or bodily injury
compensation has already been paid under section 161 or an application for payment of compensation is
pending under that section, and such Tribunal, court or other authority shall—
(a) if compensation has already been paid under section 161, direct the person liable to pay the
compensation awarded by it to refund to the insurer, so much thereof as is required to be refunded in
accordance with the provisions of sub-section
(1);
(b) if an application for payment of compensation is pending under section 161 forward the
particulars as to the compensation awarded by it to the insurer.
Explanation.—For the purpose of this sub-section, an application for compensation under section 161
shall be deemed to be pending—
(i) if such application has been rejected, till the date of the rejection of the application; and
(ii) in any other case, till the date of payment of compensation in pursuance of the
application.
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