Autobayng News Team
The insurance company held that the petitioner, legal heir of deceased vehicle owner, cannot at the same time be the liability holder and recipient of compensation.“>
Motor vehicle insurance protects a policyholder against claims made by a third party for damages due to the policyholder’s actions, but what about a claim against injury/death of policyholder in an accident? Holding that family members of such a policyholder can also claim compensation, the Supreme Court has referred the issue to a larger bench given contradictory prior judgments on the matter.While hearing the compensation plea of a minor girl who lost both parents in a car accident, the SC said section 163A of Motor Vehicles Act could be invoked for such a claim, as it is a special provision which overrides not only the rest of the Act but also any other law in force.The minor had been awarded payout by the insurance company for the death of her mother but not for her father as he was himself the insured party. The insurance company held that the petitioner, legal heir of deceased vehicle owner, cannot at the same time be the liability holder and recipient of compensation.The bench said: “… Section 163A is not restricted to third party claim; without any requirement of establishing negligence, if death or permanent disability is caused by reason of motor accident”.
“It would override Sections 147 & 149 along with other provisions of the Act and the law regulating insurance as also the terms of the policy. This according to us is the intention of incorporating the non-obstante clause under Section 163A providing for no-fault liability claims”.
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