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. ...