In Brief
A tractor insured with the Royal Sundaram Alliance Insurance Company was involved in an accident while pulling an uninsured trailer. A person travelling on the trailer died when it overturned during the accident. The Supreme Court held that the tractor's insurer remains liable for the death compensation despite the trailer not being separately insured, because the insured tractor was the root cause of the accident. The Court rejected technical distinctions about separate trailer insurance, emphasizing that the Motor Vehicles Act is welfare-oriented. The insurer's liability is capped at either the policy limits or statutory limits under the Act, whichever is higher. The Court dismissed the insurance company's appeal, upholding the enhanced compensation of Rs. 13,28,940 awarded by the High Court to the deceased's legal heirs.
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