Tag: Insurance Company Liability

Supreme Court: Insurance Can’t Deny Claim Based on Policy Clause When Vehicle Was Properly Registered & Permitted
11Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Insurance Can’t Deny Claim Based on Policy Clause When Vehicle Was Properly Registered & Permitted

Supreme Court Judgment Based on the policy's "Limitation as to Use" clause, the Supreme Court ruled that an insurance company cannot deny liability for a utility vehicle registered and permitted as a "contract carriage" to carry passengers. The clause applies only to goods carriages, and the insurer, having issued the policy with full knowledge of the vehicle's registration and permit, is bound to indemnify the owner for third-party claims. The "pay and recover" order was set aside. Facts Of The Case: The case originated from a tragic accident involving a utility vehicle, which led to the filing of five separate claim petitions before the Motor Accidents Claims Tribunal (MACT) by the legal representatives of the deceased. The owner of the vehicle, Shyam Lal, was the appellant b...
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Supreme Court Judgment: Key Takeaway from Vanita vs. Shriram Insurance Co. Ltd.
9Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Judgment: Key Takeaway from Vanita vs. Shriram Insurance Co. Ltd.

The Supreme Court dismissed the civil appeal, thereby upholding the decision of the lower courts. The ruling signifies that the appellants' legal challenge against the insurance company's position was not tenable in law. The court found no merit to interfere, allowing the impugned judgment and the terms of the insurance policy to stand. Facts Of The Case: The case originated from a claim filed by Vanita and others, likely the legal heirs of a deceased, seeking compensation under a motor accident claim. The accident presumably involved a vehicle insured with M/s Shriram Insurance Company Ltd. The Motor Accidents Claims Tribunal (MACT) initially ruled in the case, and its decision was subsequently challenged in a High Court. It appears that the claimants' appeal was unsuccessful in the Hig...
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Supreme Court Reinstates Separate Compensation for “Loss of Enjoyment of Life” in Motor Accident Cases
25Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Reinstates Separate Compensation for “Loss of Enjoyment of Life” in Motor Accident Cases

The Supreme Court held that compensation for permanent disability is a distinct head from loss of income and cannot be denied merely because the latter is awarded. It further ruled that future medical and attendant charges must account for the victim's full life expectancy, not a restricted period. The Court also reinstated compensation for loss of enjoyment of life and family's pain and suffering, emphasizing these are legitimate and independent heads of claim. Facts Of The Case: On July 3, 2011, the appellant, Kavin, a 21-year-old arts student, was travelling as a passenger in an Omni bus from Coimbatore to Chennai. At around 10:15 PM, the bus, driven rashly and negligently by its driver, dashed against a tamarind tree on the left side of the road. The accident resulted in grievous inj...
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Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation
11Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation

The Supreme Court, applying the principles established in National Insurance Co. Ltd. v. Pranay Sethi, held that a self-employed person, even one working abroad, is entitled to an addition of 40% of their established income towards future prospects when computing compensation in motor accident claims. The Court enhanced the compensation by recalculating the loss of dependency and conventional heads as per the standardized formula mandated by the Constitution Bench. Facts Of The Case: The case arose from a motor accident that occurred on 31st August 2007 at approximately 3:00 a.m. at Nirmal Kutia Chowk, Karnal. The deceased, Rajinder Singh Mihnas, a 31-year-old U.S. national, was travelling in a car from Delhi to Hoshiarpur when it was struck by a rashly and negligently driven Swaraj Mazd...
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Supreme Court Orders Insurance Payout Despite FIR Delay : Justice for Victim’s Family
5Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Orders Insurance Payout Despite FIR Delay : Justice for Victim’s Family

The Supreme Court of India overturned the High Court's decision, ruling that the delay in FIR registration and minor discrepancies in eyewitness testimony did not disprove the involvement of the offending vehicle in the accident. The Court upheld the Tribunal's compensation award, emphasizing that the insurer failed to examine the investigating officer to challenge the evidence. The judgment reinforced the principle that technicalities should not override substantive justice in motor accident claims. Facts Of The Case: The case involved a motor accident where the deceased, a school peon, died after his motorcycle collided with a speeding vehicle. His wife and three minor children filed a claim before the Motor Accidents Claims Tribunal (MACT), which awarded them compensation of ₹46,29,15...
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Supreme Court Landmark Ruling: Skilled Worker Gets Higher Disability Compensation
22Jul By The Legal ChamberNo Comments
Supreme Court

Supreme Court Landmark Ruling: Skilled Worker Gets Higher Disability Compensation

The Supreme Court upheld the claimant's appeal, enhancing compensation for permanent disability from 25% to 35% based on medical evidence, rejecting the Tribunal's unsupported reduction. It affirmed Rs. 6,000/month income for the skilled mason, applying future prospects and multiplier method. The Court emphasized expert medical opinion's primacy in disability assessment and awarded Rs. 7.19 lakh with interest, reinforcing just compensation principles under motor accident claims. Facts Of The Case: The appellant, Suresh Jatav, a skilled mason, suffered severe injuries in a motor vehicle accident on 12.08.2002 when a rashly driven bus collided with his auto-rickshaw. He sustained a compound fracture in his right fibula, requiring surgical intervention and hospitalization for six days, as w...
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Supreme Court Upholds Higher Compensation for Loss of Income in Road Accident Claim
9May By The Legal ChamberNo Comments
Supreme Court

Supreme Court Upholds Higher Compensation for Loss of Income in Road Accident Claim

The Supreme Court enhanced compensation for a road accident victim with 50% disability, revising multiple heads under the Motor Vehicles Act. It increased future income loss by applying a 40% future prospects multiplier and upheld medical expense reimbursement with additional allowances. The judgment reaffirmed principles from Pranay Sethi and Ramachandrappa, ensuring just compensation with 9% interest. Facts Of The Case: The case involves M. Seetharama, a 38-year-old man who suffered severe injuries in a road accident on 25.06.2015 when his bike collided with a rashly driven jeep. An FIR was registered against the jeep driver, confirming negligence. Seetharama sustained multiple fractures, including in his right femur, clavicle, tibia, and fibula, leading to vascular compromise and even...
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