In Brief
This case resolved a question of law on whether insurers can raise a negligence defence in claims under Section 163-A of the Motor Vehicles Act, 1988. The Supreme Court held that insurers cannot raise such defences. Section 163-A provides final, no-fault compensation using a fixed formula—not dependent on proving negligence. Permitting negligence defences would contradict the law's social security purpose and delay compensation. The court overruled the contrary position in National Insurance v. Sinitha. Pending final disposal, 50% of the compensation deposited was ordered released to claimants."
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