In a significant ruling, the Supreme Court has held that insurance companies are not liable to pay compensation under the Motor Vehicles Act if the insured individual dies due to their own rash and negligent driving.
A bench comprising Justices P S Narasimha and R Mahadevan dismissed a plea seeking ₹80 lakh compensation filed by the wife, son, and parents of a man who died after crashing his car while allegedly driving at high speed.
The top court upheld the decision of the High Court, which had earlier rejected the compensation claim, observing that the deceased had violated traffic norms and acted recklessly.
“The liability of the insurer does not extend to cases where the death is a direct consequence of the insured’s own rash and negligent conduct,” the bench noted. “If the insured himself was the tortfeasor, the question of compensating his legal heirs does not arise.”
The Court added that while insurance is meant to protect against unforeseen risks, it cannot be extended to cover unlawful or dangerous acts committed by the insured themselves.
This judgment sets a precedent that legal heirs of a person who dies due to their own reckless driving cannot claim compensation from the insurer, reinforcing the principle that personal accountability plays a crucial role in insurance coverage.
Case: G Nagarathna & Ors. vs. G Manjunatha & Anr. – Available on LAWFYI.IO
