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Supreme Court of India 2018-07-31 partly_allowed

Rani & Ors vs National Insurance Company Ltd. & Ors

Bench: 3 — A.M. Khanwilkar

In Brief

In a fatal motorcycle accident caused by a rash-driven lorry, the Motor Accidents Tribunal awarded compensation to the deceased's legal heirs and an injured pillion rider. The High Court enhanced the deceased's award by increasing the notional income assumption, but absolved the insurance company, placing liability solely on the vehicle owner. The Supreme Court held that the insurance company must first pay the awarded compensation with liberty to recover from the owner, ensuring claimants have a guaranteed source of payment. The Court rejected further enhancement of compensation, finding the High Court's income assumption to be insufficiently justified. Appeals partly allowed accordingly.

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Motor Vehicles Compensation Negligence Procedure and Evidence Insurance Liability

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