United India Insurance Co. Ltd. Vs. Shila Datta & Ors (Supreme Court of India)- The Supreme Court last week widened the scope for insurance companies for resisting claims in road accident cases, especially on the amount of compensation. The Motor Vehicles Act enumerates the limited grounds on which the insurance companies can defend claims against it in the motor accident claims tribunals. These are listed in Section 149(2) of the Act, like plying vehicle without permit or violating the conditions of the permit. This had narrowed the scope for insurance companies to present their arguments before the delivery of the order by the tribunal. In the present judgement in a batch of appeals, United India Insurance Company vs Shila Datta, the court clarified that “whatever be the reason for insurer being made a party, once it is a party, it can raise all contentions that are available to the owner or driver to resist the claim.” Thus it can raise more grounds than are listed in Section 149 of the Act.
United India Insurance Co. Ltd. Vs. Shila Datta & Ors
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS. 6026-6027 OF 2007
J U D G M E N T
