The Supreme Court of India has made a significant ruling regarding motor accident compensation, stating that insurance companies are not liable to pay compensation if a driver’s death results from their own negligence or reckless driving. The court emphasized that if an accident occurs due to the driver’s own fault, such as overspeeding or violating traffic rules, the insurer cannot be compelled to compensate the deceased’s family.
The judgment was delivered in the case of N.S. Ravish, who died in a road accident on June 18, 2014, while driving his car at high speed and in a negligent manner. The accident resulted in the car overturning, and Ravish sustained severe injuries and died on the spot. The family filed a claim seeking ₹80 lakh as compensation from United India Insurance Company, but the police charge sheet stated that the accident was caused due to Ravish’s own rash and negligent driving.
The Motor Accidents Claims Tribunal and the Karnataka High Court both rejected the family’s claim, stating that compensation under a motor insurance policy is not payable when the accident occurs solely due to the insured person’s fault. The High Court noted that the claimants must prove that the accident was not due to the deceased’s negligence and that it falls within the scope of the policy coverage.
The Supreme Court upheld the High Court’s findings, ruling that the insurance company is not obligated to pay compensation if the accident is entirely attributable to the deceased driver’s own fault, and there is no external factor involved. The court observed that if the death is solely due to the fault of the deceased driver and not caused by any external agency or third-party involvement, the insurer is not bound to pay compensation.
This ruling has significant implications for insurance companies and policyholders, as it clarifies the circumstances under which compensation can be claimed. The court’s decision emphasizes the importance of responsible driving and adherence to traffic rules, as accidents caused by a driver’s own negligence or recklessness will not be covered by insurance policies. The ruling also highlights the need for policyholders to carefully review their insurance policies and understand the terms and conditions of coverage.