National Insurance Company Ltd. Vs Gauri Gurudas Gaonkar And Ors. (Supreme Court of India)
In National Insurance Company Ltd. Vs Gauri Gurudas Gaonkar And Ors., the Supreme Court of India examined whether an insurance company, when impleaded as a party in a motor accident claim, can contest the claim on all grounds including the quantum of compensation.
The case arose from a motor accident in which a pedestrian was hit by a car driven in a rash and negligent manner, resulting in death. The legal heirs filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal (MACT). The Tribunal allowed the claim and awarded compensation of ₹52,33,440 with interest at 9% per annum.
The insurance company challenged the award before the High Court. However, the High Court dismissed the appeal as not maintainable, relying on a prior decision that restricted the insurer’s right to contest claims beyond the grounds specified under Section 149(2) of the Act.
Aggrieved, the insurance company approached the Supreme Court, contending that the High Court’s view was contrary to the law laid down in United India Insurance Co. Ltd. vs. Shila Datta & Ors., which clarified the rights of insurers when impleaded as parties.
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