Insurance Liability - The Legal Chamber

Supreme Court’s Key Ruling :Notional Income of an Engineering Student Should Be Higher

25Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court’s Key Ruling :Notional Income of an Engineering Student Should Be Higher

The Supreme Court modified the contributory negligence apportionment to 20% on the claimant, 50% on the car driver, and 30% on the bus driver. It enhanced compensation by revising the notional income calculation for an engineering student and reinstated attendant charges, emphasizing just compensation for 100% disability. Facts Of The Case: On January 7, 2017, the appellant, a 20-year-old engineering student, was riding a motorcycle with a friend on the pillion. A car ahead, driven by respondent no. 2, suddenly applied its brakes on the highway because the driver's pregnant wife felt a vomiting sensation. This caused the appellant to collide with the rear of the car and fall onto the road. Subsequently, a bus, insured by respondent no. 1, which was coming from behind, ran over the appell...

Landmark Judgment: Supreme Court Upholds LMV License Validity for Commercial Vehicles

14Aug

By The Legal ChamberNo Comments

Supreme Court

Landmark Judgment: Supreme Court Upholds LMV License Validity for Commercial Vehicles

The Supreme Court held that a driver with a Light Motor Vehicle (LMV) license can operate a commercial vehicle (gross weight ≤7500 kg) without additional endorsement, affirming Mukund Dewangan. However, the Insurance Company was liable under the "Pay and Recover" principle despite the "Liability Only Policy" excluding gratuitous passengers, citing Baljit Kaur and Pranay Sethi. Compensation was enhanced by 10% under conventional heads. Facts Of The Case: On 27th November 2013, Gokul Prasad, a 32-year-old cloth seller, died in an accident involving a TATA 407 truck (registration No. M.P. 53G/0386) near Kurwaiha Ghati Road. The truck, driven rashly and negligently by Respondent No. 3, was returning from a weekly market. The deceased’s legal representatives (Appellants) filed a claim under S...

Supreme Court Prioritizes Eyewitness Account Over Police Statement in Accident Case

7Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Prioritizes Eyewitness Account Over Police Statement in Accident Case

The Supreme Court held that the High Court erred in disregarding the testimony of the eyewitness (PW-1) and documentary evidence (FIR, charge sheet) while relying on an unproven police statement (Ex-D1). It reinstated the MACT's compensation award, ruling that the insurer failed to disprove negligence by the offending vehicle's driver under Section 166 of the MV Act. The Court emphasized that non-examination of additional witnesses or delayed reporting was not fatal to the claim. Compensation of ₹12.43 lakhs was upheld, with 85% apportioned to the deceased's wife. Facts Of The Case: On September 24, 2021, Nathuram Ahirwar was riding a motorcycle with his wife (PW-1) as a pillion rider when their vehicle was allegedly hit from behind by a mini-truck (APE pickup) bearing registration MP 04...

Supreme Court Clarifies Compensation Rules Under MV Act: Insurer Liable Despite Negligence Claims

5Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Clarifies Compensation Rules Under MV Act: Insurer Liable Despite Negligence Claims

The Supreme Court held that under Section 163A of the Motor Vehicles Act, 1988, proof of negligence is not required for claiming compensation, as the provision operates on a structured formula basis. The Court emphasized that compensation must be computed as per the Second Schedule of the Act, excluding non-scheduled heads like loss of love and affection. It ruled that the deceased, being a third party to the offending vehicle, entitled the claimants to compensation, payable jointly and severally by the insurer of the offending vehicle. The judgment clarified that Section 163A has an overriding effect over other provisions of the Act, ensuring expedited compensation without fault liability adjudication. Facts Of The Case: On the night of November 15, 2006, Surender Singh was driving a tr...

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...

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...

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 ...

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. ...