Key Takeaways
- Supreme Court rules insurance firms cannot deny claims due to route deviation
- Court calls such denials “offensive to justice” when accident wasn’t victim’s fault
- Judgment came while dismissing appeals by vehicle owner and New India Insurance Company
The Supreme Court has delivered a landmark judgment protecting accident victims’ rights, ruling that insurance companies cannot reject compensation claims merely because the vehicle deviated from its permitted route.
A bench comprising Justices Sanjay Karol and Prashant Kumar Mishra stated that denying victims or their dependents compensation for route violations would be “offensive to the sense of justice” since the accident itself occurred through no fault of theirs.
“To deny the victim/dependants of the victim compensation simply because the accident took place outside the bounds of the permit and, therefore, is outside the purview of the insurance policy, would be offensive to the sense of justice, for the accident itself is for no fault of his. Then, the insurance company most certainly ought to pay,” the bench said.
Case Background
The ruling came while dismissing appeals filed by a vehicle owner and The New India Insurance Company Limited in a fatal accident case.
On October 7, 2014, a motorcyclist was killed on the spot when hit by a vehicle driven rashly and negligently. The Motor Accident Claims Tribunal had awarded Rs 18.86 lakh compensation with interest to the victim’s family.
Legal Proceedings
Both parties challenged the tribunal’s order – the petitioner disputed the compensation calculation, while the insurance company contested the claim citing policy condition violations.
The Karnataka High Court directed the insurer to pay the compensation first and then recover the amount from the bus owner. Both parties appealed this order to the Supreme Court, which ultimately dismissed their appeals and upheld the compensation liability.
