While these directions applied to the system at large, the appeal before the Court concerned one family’s decades-long wait for compensation.
The Court upheld the Telangana High Court’s decision directing National Insurance Company to compensate the family of a man who died in a road accident while travelling in his insured vehicle.
The insurer had argued that the deceased’s comprehensive policy did not cover the owner’s personal risk because no additional premium had been paid. Rejecting the contention, the High Court had held that a comprehensive policy covered the owner travelling in the vehicle and awarded compensation of ₹10,00,500 with 7.5 per cent interest.
Affirming that view, the Supreme Court said courts dealing with motor accident claims should not adopt a hyper-technical approach. Referring to an IRDAI circular dated November 16, 2009, it held that a comprehensive or package policy covers occupants of the vehicle, including the owner.
The appeal was accordingly dismissed. The Court directed all stakeholders to file compliance affidavits on its broader directions by August 14. The matter will next be listed on August 18 to consider compliance.
