Tag: Insurance Law

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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Landmark Judgment: Supreme Court Explains How to Calculate Compensation for a Child’s Death
11Sep By The Legal ChamberNo Comments
Supreme Court

Landmark Judgment: Supreme Court Explains How to Calculate Compensation for a Child’s Death

The Supreme Court clarified that in claims under Section 166 of the MV Act, a notional income for a deceased child need not be limited to the figures in Schedule II (for Section 163-A claims). It reinstated the Tribunal's calculation, confirming no deduction for personal expenses is required in such cases. Facts Of The Case: The case originated from a motor accident involving a 10-year-old boy who was fatally struck by a bus owned by the Tamil Nadu State Transport Corporation while he was cycling to school. The parents of the deceased child filed a claim petition before the Motor Accidents Claims Tribunal. The Tribunal, acknowledging the undisputed negligence of the bus driver, awarded a total compensation of ₹8,55,000. This calculation was based on attributing a notional monthly...
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Supreme Court Shifts Liability Back to Insurance Company in Landmark Motor Accident Case
11Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Shifts Liability Back to Insurance Company in Landmark Motor Accident Case

This Supreme Court judgment holds that under Section 147 of the Motor Vehicles Act, 1988, an insurer is liable to indemnify claims for the owner of goods or his authorized representative traveling in a goods vehicle. Furthermore, the registered owner remains liable for compensation until a transfer is formally reported to the Registering Authority under Section 50, and the insurer cannot avoid its liability based on unsubstantiated assertions. Facts Of The Case: A motor accident involving a goods vehicle resulted in several claims for death and injury. The injured and deceased were petty hawkers, such as a fish monger and a vegetable vendor, who were accompanying their goods in the vehicle at the time of the accident. The insurance company contested its liability on two primary gro...
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Supreme Court Decides: Who Pays When a Car Insurance Policy is Cancelled?
9Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Decides: Who Pays When a Car Insurance Policy is Cancelled?

This Supreme Court case reaffirms the principle that an insurance policy stands rescinded upon dishonour of the premium cheque and intimation to the concerned parties, absolving the insurer from statutory liability. However, applying the "pay and recover" doctrine, the insurer was directed to pay the awarded compensation to the third-party claimants and was permitted to recover the same from the vehicle owner. Facts Of The Case: On August 22, 2005, Dheeraj Singh died when his motorcycle was hit from behind by a speeding truck (HR 46 A 1020). The deceased, a 36-year-old computer engineer, was found to be earning ₹3,364 per month. His dependents filed a claim before the Motor Accident Claims Tribunal. The appellant, National Insurance Company Ltd., disowned liability by contending that the...
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Supreme Court Rules: Insurer Must Pay Full Claim If It Didn’t Plead ‘Limited Liability’ Earlier
22Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: Insurer Must Pay Full Claim If It Didn’t Plead ‘Limited Liability’ Earlier

The Supreme Court ruled that an insurer's contractual liability under a personal accident cover is distinct from its statutory third-party liability. The defense of "limited liability" must be specifically pleaded and proved before the Tribunal; it cannot be raised for the first time in appeal. The insurer was thus liable to pay the full compensation awarded. Facts Of The Case: The deceased, who was the brother of the car owner, was driving the vehicle when its right rear tyre suddenly burst. This caused the car to go out of control, topple, and resulted in a fatal head injury that led to his death. The car was also occupied by the owner, his wife, and the deceased's wife, all of whom sustained injuries. The claimants, the deceased's widow, minor children, and parents, filed for compensa...
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