Summary
The Supreme Court set aside a third-party compensation award arising from the owner-driver’s death in a single-vehicle accident caused by his own negligence. His legal representatives could not maintain that Section 166 claim against his insurer. Their entitlement was confined to the Rs 2,00,000 personal-accident cover under the policy, with 9% interest from the claim petition until deposit.
Issues
- Whether an owner-driver’s legal representatives could recover third-party compensation when his own negligence caused the single-vehicle accident.
- What amount was payable under the contractual personal-accident cover.
Provisions considered
- Section 166(1), Motor Vehicles Act, 1988The legal representatives could not maintain the fault-based claim where the deceased owner-driver alone caused the accident and was not a third party vis-à-vis his insurer. (¶ 7–8)
Held
- The deceased was both owner and driver; no other vehicle was involved, and his own rash and negligent driving caused the accident. He was not a third party under the Act. His legal representatives could not maintain the Section 166 claim based on his own fault, and no third-party indemnity liability arose. (¶ 7–8)
- The High Court could not nevertheless direct payment of the Tribunal’s entire award. The contractual personal-accident cover was limited to Rs 2,00,000, and the claimants were entitled to that amount. The insurer was directed to deposit it within four weeks, with 9% annual interest from the claim petition until deposit. (¶¶ 5, 9–10)
Result
Insurer’s appeal allowed: full Tribunal award displaced; Rs 2,00,000 personal-accident benefit with 9% interest from the claim petition to deposit payable within four weeks, without costs.