Tag: Insurance Liability

Supreme Court Overturns Contributory Negligence in Fatal Bike Crash, Awards Full Compensation
29May By The Legal ChamberNo Comments
Supreme Court

Supreme Court Overturns Contributory Negligence in Fatal Bike Crash, Awards Full Compensation

The Supreme Court quashed the contributory negligence finding, holding the car driver solely liable for the 2009 accident. It ruled that the High Court erred by ignoring eyewitness testimony (PW-4) and a crucial site plan proving the motorcyclist was on his correct side. Full compensation was restored as deductions under Section 168 of the Motor Vehicles Act, 1988, were invalid. The Court emphasized beneficial interpretation in accident claims and permitted late evidence admission given the summary nature of proceedings. Facts Of The Case: On July 26, 2009, Gautam (22 years, bachelor) drove a new motorcycle (insured by Bajaj Allianz) with Harpal Singh (30 years, pillion rider) near Kaithal, Haryana. An Alto car (insured by New India Assurance), driven by Gulzar Singh, collided head-on wi...
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Justice for Disabled Victim: Supreme Court Awards ₹12 Lakh Extra for Disabled Accident Victim’s Future Care”
21May By The Legal ChamberNo Comments
Supreme Court

Justice for Disabled Victim: Supreme Court Awards ₹12 Lakh Extra for Disabled Accident Victim’s Future Care”

The Supreme Court ruled that insurance companies cannot be compelled to provide non-monetary relief like prosthetic limbs or ongoing medical supervision to accident victims. Emphasizing indemnity principles, the Court held compensation must be monetary, calculating ₹12 lakh for future prosthetic/wheelchair needs. It overturned the High Court's directive for in-kind support, reaffirming insurers' liability is limited to pecuniary compensation under motor accident laws. The judgment clarifies that "just compensation" under Section 168 of the Motor Vehicles Act excludes imposing perpetual welfare obligations on insurers. Facts Of The Case: The case arose from a motor accident on 21.12.2008, where respondent Suraj Kumar, a 22-year-old tempo cleaner, suffered severe injuries...
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Supreme Court Clarifies Dependency Rights in Accident Claims: Key Takeaways on Legal Heirs & Dependency
17May By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies Dependency Rights in Accident Claims: Key Takeaways on Legal Heirs & Dependency

The Supreme Court upheld the High Court's decision denying enhanced compensation to the married daughter (Appellant No. 1) under the Motor Vehicles Act, 1988, as she failed to prove financial dependency on the deceased. However, it reversed the dismissal of the mother’s (Appellant No. 2) claim, awarding her ₹19.22 lakhs, recognizing her dependency and applying principles from Pranay Sethi and Sarla Verma for just compensation. The ruling clarified that legal heirs must establish dependency for loss-of-income claims, except under Section 140’s no-fault liability. Facts Of The Case: On January 26, 2008, Smt. Paras Sharma died in a road accident when a Rajasthan Roadways bus, negligently taking a sudden right turn, crushed her two-wheeler. Her married daughter (Appellant No. 1) and elderly ...
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Supreme Court Clarifies Motor Vehicle Act: Insurer Must Pay Compensation Even for Uninsured Trailer
5May By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies Motor Vehicle Act: Insurer Must Pay Compensation Even for Uninsured Trailer

The Supreme Court ruled that when a tractor (insured) causes an accident involving an attached trailer (uninsured), the insurer is liable for third-party compensation under the Motor Vehicles Act, 1988. The Court held that the trailer, being part of the tractor's operation, need not be separately insured, emphasizing the Act's welfare-centric interpretation. The insurer's liability was capped at the policy limit, with recovery rights against the vehicle owner for excess amounts. The judgment harmonized precedents on composite vehicle insurance and statutory compensation. Facts Of The Case: On February 29, 2012, Nagarajappa (deceased) was working as a coolie on a tractor-trailer transporting soil when the vehicle overturned due to the driver’s negligence, resulting in his fatal injuries. ...
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