In a significant ruling amidst rising road accidents across the country, the Supreme Court has clarified that families of drivers who die due to their own negligent driving are not entitled to insurance compensation under the Motor Vehicles Act.
The landmark judgment, delivered on July 2, 2025, states that if a driver dies in an accident caused by his own negligence, the insurance company is not liable to pay compensation to the deceased's family.
The case in question involved a claim by the wife, son, and parents of a deceased driver, who sought ₹80 lakh in compensation from United India Insurance Company. They contended that the deceased had a monthly income of ₹3 lakh and was the sole breadwinner of the family. However, the Motor Accident Claims Tribunal (MACT) rejected the claim, holding the deceased driver responsible for the accident.
Following the rejection, the family appealed to the Karnataka High Court in November 2024. However, the High Court upheld the MACT's decision, citing the precedent set by the Supreme Court in the 2009 case of Ningamma v. United India Insurance Company Ltd. In that case, the court ruled that insurance coverage does not apply when the death results from the insured’s own negligent actions.
This latest judgment reinforces the interpretation of liability under the Motor Vehicles Act and clearly delineates the limits of insurance coverage in such cases. Legal experts believe the ruling will have a wide-ranging impact on future motor accident claims, particularly in instances where the insured party is directly responsible for the incident.