third-party liability insurer India

In The New India Assurance Company Ltd. vs. Usha Devi & Ors., the Supreme Court partially allowed two appeals filed by insurance companies challenging the High Court’s order awarding Rs.15,00,000/- compensation to the claimants under Section 163A of the Motor Vehicles Act. The deceased, a truck driver, died in a collision involving two vehicles. The Tribunal had dismissed the claim for lack of negligence evidence. The High Court reversed this, which was partly set aside by the Supreme Court. The Apex Court recalculated compensation as per the Second Schedule of the Act, holding that negligence is irrelevant under Section 163A and awarded Rs.4,77,839/- with 8% interest, payable jointly and severally by the insurer of the offending dumper truck.