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Civil · Reportable judgment

The Royal Sundaram Alliance Insurance Company Limited vs Smt. Honnamma & Ors.

Court
Supreme Court of India
Date
5 May 2025
Case No.
Civil Appeal No. 6336 of 2025
Result
Dismissed
Bench
Sudhanshu Dhulia, Ahsanuddin Amanullah
Citation
[2025] 6 S.C.R. 141 : 2025 INSC 625
Acts & Sections
Motor Vehicles Act, 1988
Supreme Court Reports [2025] 6 S.C.R. 141 : 2025 INSC 625
Issue for consideration
Matter pertains to the correctness of the order passed by the High Court partly allowing the appeal of the respondents, enhancing the compensation and fastening the liability on the insurance company.
Headnote

Motor Vehicles Act, 1988 – s.147 – Fatal accident – Compensation – Liability of the insurance company – Tractor insured with the appellant-insurance company attached to a trailer, and due to rash and negligent driving of the driver, tractor and trailer toppled, person on the trailer, fell off the trailer, resulting in his death – Claimants-wife and minor daughters claimed compensation – Tribunal granted compensation of Rs.9,50,000/- and held that risk of employee of the tractor and trailer was not statutorily covered and fastened the liability to satisfy the award on the owner and the driver – Claimants sought enhancement of compensation – High Court enhanced compensation to Rs.13,28,940/- and fastened the liability of compensation on the appellant – Correctness:

Held: If an insured vehicle hits another vehicle which in turn hits a third vehicle, then for the entire chain of accidents, the liability would pass on to the vehicle which was the root cause of the accident because it is the result of the action in the same chain of events which cannot be segregated or compartmentalized – Court is duty-bound to be mindful of the ground realities and cannot let practicality be overshadowed by technicality – On facts, the main cause of the accident was the tractor which was pulling/driving/moving the trailer and in such sequence of events, the trailer upturned – Thus, the accident was caused by the tractor, as during the course of being driven/pulled by the tractor, the accident occurred – Liability of the tractor/its insurer extended to the accident caused by the tractor resulting in the death of the deceased, through the trailer – Appellant ought not to be saddled with payment of compensation exceeding what the insurance policy provides for or the limit, if any, set under any law, whichever be the higher amount of the two – Amount exclusively payable by the appellant, however, in no case be less than Rs.9,50,000/- – No infirmity in the impugned order, either with regard to the quantum of compensation awarded or fixation of liability on the insurer-appellant for the accident. [Paras 11, 12, 18, 19]

Keywords: Motor accident · Death · Compensation · Beneficial and welfareoriented legislation · Liability of insurance company · Trailer attached to tractor · Chain of events · Root cause of accident · Events which cannot be segregated or compartmentalised · Maximum amount payable · Recover differential amount · Total compensation awarded less maximum amount payable · Enhancement of compensation · Rash and negligent driving of the driver · Fixation of liability on the insurer for the accident

As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Nidhi Jain. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Judgment Ahsanuddin Amanullah, J. Leave granted. 2. The present appeal mounts a challenge against the Final Judgment and Order dated 25.11.2022 in MFA No.3659/2014 (MV-D) (hereinafter referred to as the ‘Impugned Order’) passed by a learned Single Judge of the High Court of Karnataka at Bengaluru (hereinafter referred to as the ‘High Court’), whereby the appeal filed by the Respondents No.1 to 3 (herein) was partly allowed and the compensation awarded vide Award dated 02.04.2014 passed by the learned Senior Civil Judge & Member, Additional Motor Accident Claims Tribunal, Harihar (hereinafte
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