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Supreme Court of India 2018-08-09 allowed

Shivaji and Anr vs Divisional Manager, United India Insurance Co. Ltd. and Ors

Bench: 3 — D.Y. Chandrachud

In Brief

The parents of a car driver killed in an accident in 2010 claimed compensation under Section 163A of the Motor Vehicles Act, 1988. The Motor Accident Claims Tribunal awarded Rs 4,60,800, but the High Court set aside the award, ruling that since the deceased driver caused the accident, the legal heirs were not entitled to compensation. The Supreme Court allowed the appeal, holding that Section 163A does not permit insurers to raise negligence defences. The provision aims to provide swift, formula-based compensation outside fault-based proceedings, and allowing such defences would undermine that legislative purpose.

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Motor Vehicles Act Compensation Insurance Law Section 163A Tort Liability

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