2026 INSC 793 C.A. No. 14369 of 2025 Page 1 of 23

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 14369 OF 2025

NATIONAL INSURANCE CO. LTD. …. APPELLANT(S)

Versus

SMT. THUNGALA DHANA LAXMI & ORS. .… RESPONDENT(S)

J U D G M E N T

SANJAY KAROL, J.

1. In the present appeal, this Court had proceeded on primarily two issues, which

arose for consideration. The first being, the lack of compliance of Section 146

of the Motor Vehicles Act, 1988

1

which requires all vehicles to have a valid

insurance policy covering third-parties. Secondly, whether there should be a

uniform motor-vehicle policy structure covering all occupants of a vehicle, in

addition to the statutorily mandated coverage of third-party risks.

2

1

Hereinafter ‘MVA’.

2

Order dated 18.11.2025.

C.A. No. 14369 of 2025 Page 2 of 23

2. Vide Order dated 18.11.2025, we had framed the above two issues and

summarized the procedural history of the case at hand as follows:

“4. We had issued notice in the present matter on 24.03.2025. Vide Order

dated 09.09.2025, this Court had impleaded twenty two insurance

companies as party respondent, given the nature of the issue before this

Court:

“We are of the considered view that larger issue of issuance

of various policies by the different Insurance Companies

covering the motor vehicles is pending consideration before

us, in this view of the matter, we implead the following

insurance companies.”

5. Thereafter on 13.10.2025, after hearing the learned counsel for the

insurance companies, this Court impleaded the Insurance Regulatory and

Development Authority (hereinafter ‘IRDA’) constituted under the IRDA

Act, 1999. The Ministry of Road Transport and Highways was added as

party respondent vide Order dated 30.10.2025.”

3. Vide the very same order, this Court had sought the response from the Ministry

of Road Transport and Highways

3

, the Insurance Regulatory Development

Authority of India

4

, the General Insurance Council of India, and all the insurance

companies having business in India, on the abovementioned issues. We reiterate

some pertinent observations, made in the order:

“7… The ignorance of a statutory mandate results in motor accidents

involving uninsured vehicles, which directly cause innocent victims having

to run from pillar to post for compensation. Therefore, in furtherance of

public interest, this Court seeks the response of the Ministry of Road

Transport and the IRDA, on what steps can be taken to ensure that all

vehicles have a valid insurance policy. Valuable suggestions have been

made by counsel for all other parties during the course of the hearings.

Therefore, they are also permitted to file their suggestions/responses in this

regard.

3

Hereinafter ‘MoRTH’.

4

Hereinafter ‘IRDA’.

C.A. No. 14369 of 2025 Page 3 of 23

9. From a reading of the above, it is clear that the IRDA has been tasked

with the protection of consumer interest when it comes to matters involving

insurance.”

4. Thereafter, on 09.12.2025, we had asked the abovementioned stakeholders to sit

amongst themselves, discuss all these issues and file a supplementary affidavit.

We have heard the learned counsel for the parties. We have also perused the

affidavits on record, filed by the respective parties. In our view, it is appropriate

for certain directions to be issued, in the public interest.

Statutory Framework

5. At the outset, before proceeding to the directions, it is imperative to discuss the

statutory scheme concerning the issues at hand. The IRDA Act, 1999, was

enacted to “protect the interests of holders of insurance policies, to regulate,

promote and ensure orderly growth of the insurance industry and for matters

connected therewith or incidental thereto.” The IRDA came to be established

under Section 3 of the Act. As per Section 4, the IRDA is to consist of one

Chairperson, not more than five whole-time members and not more than four

part-time members.

6. Section 14 of the Act, spells out the duties, powers and functions of the

Authority. Section 14 (2)(b) states that the powers and functions of the Authority

extends to “protection of the interests of the policy-holders in matters

concerning assigning of policy, nomination by policy-holders, insurable interest,

settlement of insurance claim, surrender value of policy and other terms and

conditions of contracts of insurance.” Section 26 empowers the Authority to

make regulations consistent with this Act, to carry out the purposes of the Act.

C.A. No. 14369 of 2025 Page 4 of 23

7. The purported intent behind enacting the Insurance Act, 1938, was to consolidate

and amend the law relating to the business of insurance. Section 64C, constituted

the General Insurance Council of India. Section 64L spells out the functions of

the General Insurance Council, as:

“(a) to aid and advise insurers, carrying on general insurance business, in

the matter of setting up standards of conduct and sound practice and in the

matter of rendering efficient service to holders of policies of general

insurance;”

8. The MVA mandates an insurance policy covering third-party risks under Section

146 under Chapter XI – Insurance of Motor Vehicles against Third Party Risks.

No person is allowed to use a vehicle in the absence of such policy. Section 147

spells out the requirements of a policy and limits of liability. Section 149 of the

Act mandates the duty of insurers to satisfy awards against persons in respect of

third-party risks. Section 207 empowers a police officer or authorized person by

the Government to seize and detain vehicles which do not possess valid

registration or permit etc.

9. In this backdrop, we proceed to examine the suggestions given by the respective

parties. We have heard Mr. N. Venkataraman, learned Additional Solicitor

General; Mrs. Archana Pathak Dave, learned Additional Solicitor General; Mr.

Joy Basu, learned Senior Counsel; Ms. Meenakshi Midha, learned counsel and

other learned counsels at length. On 09.12.2025, during the deliberations in

Court, the following issues came to be discussed:

a. Road safety is an often-discussed but still unaddressed issue. On average,

there are more than four lakh road accidents in India every year.

b. In India, more than half of the vehicles plying do not possess a valid

insurance policy. Additionally, there are a large number of vehicles that do

C.A. No. 14369 of 2025 Page 5 of 23

not possess active or valid registration. There is a stark gap between the

statutory mandate and enforcement mechanism on the ground.

c. When it comes to purchase of insurance, there is a lack of uniformity of

clauses contained in different insurance policies. Moreover, there is scope

for improvement when it comes to customer awareness about the different

coverage of insurance policies.

10. In furtherance of our order dated 09.12.2025, the IRDA, after consulting all

stakeholders vide a meeting on 12.12.2025, including the General Insurance

Council, and twenty-four insurance companies, has made the following

suggestions:

On uninsured vehicles

a. The mParivahan App can be deployed by State Law Enforcement

Agencies, to identify uninsured vehicles and take appropriate punitive

action in line with the MVA.

b. Uninsured vehicles can also be identified by using Automatic Number

Plate Recognition

5

by cameras that are already installed at highways, toll

plazas and city roads.

c. Enforcement through hand-held devices with the Traffic Police will enable

challans for this purpose under Section 196 of the MVA. The fine

enumerated thereunder is Rs. 2,000/- for the first violation and Rs. 4,000/-

for subsequent violations, which is not having the desired effect, as such,

the same may be enhanced. Section 207 also permits seizure of the vehicle

5

Hereinafter ‘ANPR’.

C.A. No. 14369 of 2025 Page 6 of 23

in question, if being driven without permits. The Database of Insurance

Information Bureau (established under IRDA) and VAHAN portal can be

deployed for identification of uninsured vehicles.

On insurance policies

d. Third-Party Only Policy is the mandatory cover as per the MVA. For add-

on covers, covering pillion riders, occupants etc. the IRDA will draft

uniform policy wordings for these heads, while the coverage and pricing

will be left to the insurance companies.

e. Customer Option Form would be made mandatory before purchasing a

new vehicle, through distributors. A consumer-friendly information sheet

will also be given to the prospective customers outlining who is covered

under mandatory and optional covers, specifically highlighting the option

for coverage of the occupants, pillion rider and driver of the vehicle in

question.

f. Extended mandatory covers will not be in the larger public interest. The

premium rates are revised at regular intervals depending upon claims ratio,

and fixing a longer tenure for insurance will prevent this revision,

increasing premiums.

11. The General Insurance Council has agreed with the IRDA and made the

following suggestions, on affidavit, before this Court:

C.A. No. 14369 of 2025 Page 7 of 23

On uninsured vehicles

a. A comprehensive, technology-enabled framework for consumer

awareness on motor insurance is necessary. Efforts such as digital

education and local outreach may be implemented.

b. A handheld-digital device or digital application be provided to the traffic

police to monitor real-time insurance status of vehicles and impose

challans for violations. The platform will be based upon data from the

Vahan Parivahan Portal, integrated with the Insurance Information Bureau

of India, which already possesses the insurance status of vehicles.

On insurance policies

c. For the insurance companies, each insurer shall host on its website a

section that explains the importance of obtaining insurance, so as to make

sure that prospective policyholders are well-informed. Along with

websites, digital media and social media platforms will be used to amplify

this information.

d. Since intermediaries such as agents and brokers are directly in contact with

the public, their education should be conducted through structured training

modules and materials developed by the General Insurance Council.

e. Lastly, long-term policies in the past have not brought down the percentage

of uninsured vehicles plying on the road. Moreover, long-term policies will

only add to the financial burden for the vehicle owners.

f. Modify and adopt Forms VI, XIII & XIV as uniform claim application

forms across India. Frequency of Lok Adalats may be increased, where

around 40-50% of matters are settled.

C.A. No. 14369 of 2025 Page 8 of 23

12. We now proceed to examine the affidavit on behalf of the MoRTH. The

following submissions have been made qua uninsured vehicles:

a. On the aspect of use of ANPR cameras, it is submitted that a SOP for

Electronic Monitoring and Enforcement of Road Safety, duly vetted by the

Supreme Court Committee on Road Safety, has been issued to States on

28.10.2025.

b. In 7 states, e-detection has been initiated for identification and penalizing

of uninsured vehicles. They are Odisha, West Bengal, Rajasthan, Gujarat,

Himachal Pradesh, Chhattisgarh and Uttarakhand.

c. Awareness campaigns are being conducted such as “Sadak Suraksha

Abhiyaan” is being launched to create awareness on programs and policies

related to road safety.

d. 22% road accidents involve uninsured vehicles as per data from e-DAR

Accident Data.

e. The Ministry has requested States to use eDAR to verify the insurance

status of vehicles involved in accidents and issue challans under Section

196 for uninsured vehicles.

f. ANPR cameras may be integrated with VAHAN data for issuance of

challans, when a vehicle is found uninsured on the roads.

g. Uninsured vehicles may be impounded to create a strong deterrent.

h. Uninsured vehicles can be flagged as ‘not to be transacted with’ in the

VAHAN portal to prevent them from availing any transport-related

services till such time the insurance for such vehicles is renewed.

C.A. No. 14369 of 2025 Page 9 of 23

i. Amendment to Section 196 of the MVA, which is yet to be notified,

imposed progressive fines on driving uninsured vehicles. For the first

offence, a fine of three times the basic premium of the vehicle or five

thousand rupees, whichever is higher, has been imposed. For subsequent

infractions, a fine of five times the basic premium or ten thousand rupees,

whichever is higher, has been imposed.

j. The Ministry has started adoption of barrier-less tolling, also called Multi

Lane Free Flow Tolling. This involves the use of ANPR cameras and other

advanced equipment which reads the FASTag along with the vehicle

number, and thereafter deducts the applicable fee from the wallet attached

with the FASTag. This eliminates the need for the vehicle to stop at the

Toll Plaza. The current average waiting time is 40 seconds. Moreover, the

manpower involved, costs 12-15% of the toll collection. For testing of this

system, bids have been invited for 20 – 25 plazas across India. Two have

already been commissioned and made operational.

13. The various insurance companies before us have submitted that insurance

policies can broadly be categorized as follows:

i. Third-Party Liability Insurance

This insurance covers liability for injury, death or damage to property of

third-parties. This type of insurance is mandatory under Section 146 of the

MVA and is commonly referred to as Act Only Policy. It does not cover

damage to the insured vehicle itself.

C.A. No. 14369 of 2025 Page 10 of 23

ii. Comprehensive Insurance Policy

This type of insurance covers liability for injury, death, or damage to the

property of occupants of both vehicles concerned. For instance, pillion

riders of two-wheelers and other occupants of a four-wheeler are also

covered under this insurance.

iii. Own – Damage Cover

This is an optional standalone policy which covers damage to the insured

vehicle due to accidents, fire, theft etc., depending on the terms of the

policy.

iv. Commercial Vehicle Insurance Policy

This policy covers vehicles which are used for commercial/business

purposes. It covers third-party liability as well as damage to the goods being

carried/occupants of the vehicle/damage to the vehicle itself.

14. In addition to the above, there are various add-on covers that are offered by the

insurance companies. It has further been submitted that pursuant to the directions

of this Court in S. Rajaseekaran v. Union of India

6

, at the time of registration

of new vehicles, a three-year third-party liability only policy for private cars, a

five-year third-party liability only policy for new two-wheelers, to be bundled

with a one-year Own Damage cover, has been made mandatory.

6

2025 SCC OnLine SC 2555.

C.A. No. 14369 of 2025 Page 11 of 23

15. In view of the nature of the issue involved, Mr. J.R. Midha, learned senior

counsel, has also put forth certain submissions regarding the motor accident

claims process. It has been submitted that:

a. On a conjoint reading of Sections 159 [formerly Section 158(6)] and

Section 166 of the MVA reveals that the object behind their enactment was

to allow the Motor Accident Claims Tribunal

7

to take cognizance of a

claim directly on the basis of the accident information report of the police,

without the formal requirement of a separate claim petition. The form of

such report is prescribed under Form 54 of the Central Motor Vehicles

Rules.

b. The non-compliance of Section 159 [formerly Section 158(6)] of the

MVA, requiring the police to forward the accident information report to

the MACT, was noticed by this Court in General Insurance Council v.

State of Andhra Pradesh

8

and directions were passed to all State

Governments and Union Territories to ensure strict compliance. The same

were reiterated by this Court in Jai Prakash v. National Insurance

Company

9

.

c. In M.R. Krishna Murthi v. New India Assurance Company Limited

10

,

this Court reiterated that earlier directions issued by this Court for speedy

disposal of motor accident claims, within a period of 90/120 days of the

accident, are not being complied with.

7

Hereinafter ‘MACT’.

8

(2007) 12 SCC 354

9

(2010) 2 SCC 607.

10

(2020) 15 SCC 493.

C.A. No. 14369 of 2025 Page 12 of 23

d. The abovementioned directions are summarized as follows:

i. In respect of motor accidents, the police have to carry out complete

investigation and submit a Detailed Accident Report (DAR) before

the MACT within 30 days of the accident.

ii. In cases pending for the service on the driver, owner or eye witness,

the Police shall ensure their service and production before the

concerned MACT.

iii. The Insurance Company shall compute the compensation within 30

days of DAR and submit their report to the Tribunal.

iv. If the amount offered is fair and acceptable to the claimant, consent

award shall be passed, and compensation be paid within 30 days

thereafter.

v. If the offer is not acceptable or the Tribunal finds it unfair, then the

Tribunal shall pass an award within 30 days thereafter.

e. It has been submitted that a number of these directions have been

incorporated in the scheme of the Central Motor Vehicles Rules, notified

on 28.02.2022, which came into force on 01.04.2022.

f. However, with respect to accidents before 31.03.2022, there are a number

of cases where claim petitions are pending due to service being pending on

some witnesses or non-production of relevant documents. In view thereof,

it has been submitted that the above directions must be implemented qua

those accidents.

Our View

16. An unfortunate reality of road safety in India is that despite the existence of a

statutory framework mandating third-party motor vehicle insurance, the

C.A. No. 14369 of 2025 Page 13 of 23

compliance thereof is found to be lacking. Consequently, victims or families

affected by motor accidents often have to run pillar to post in order to receive

compensation. Recently, in Shishu Pal @ Shish Ram & Ors v. Surjeet & Ors

11

,

this Court had pointed out a pendency of over four years in more than 50% of

motor accident claim cases.

17. This situation is compounded when the vehicle in question has no valid

insurance policy. It is shocking to learn that nearly 56% of vehicles plying on

Indian roads remain uninsured as per the Report of the Standing Committee on

Finance 2024–25, titled ‘Action taken by the Government on the

Observations/Recommendations contained in Sixty Sixth Report on the subject -

Performance Review and Regulation of Insurance Sector’, dated December

2024. In absolute terms, the stark figure of uninsured vehicles stands at 16.54

crore vehicles out of 30.48 crore vehicles.

12

The consequent effect is that the

statutory safeguard of victim compensation is often delayed, if not defeated. The

object behind mandatory insurance under Section 146 of the MVA is not just

that victims of road accidents are compensated, it is also that they are not drawn

into prolonged litigation.

18. The result of vehicles remaining uninsured is that the victims of the accident and

their families have no recourse to adequate compensation, within a reasonable

time period. They often have to enter into prolonged litigation concerning the

quantum as well as liability for compensation. The consequence is even more

severe for families where the victim is deceased or has suffered permanent

disability, as the financial impact on the family is significantly heightened.

11

2026 INSC 634.

12

Answer of the Government of India to Lok Sabha Unstarred Question No. 3211 on 20.03.2023; except vehicles

from Madhya Pradesh, Andhra Pradesh and Lakshadweep.

C.A. No. 14369 of 2025 Page 14 of 23

19. This is further compounded by a number of vehicles not possessing valid or

active registration. Therein, the process of tracing the identity of the

driver/owner involved in the accident becomes improbable and time-consuming.

Such circumstances defeat the very purpose and statutory mandate behind the

MVA.

20. The number of road accidents in India also points towards the scale of this

problem. As per response to Unstarred Question No. 1227 of the Rajya Sabha,

answered on 10.12.2025, the number of road accidents for 2024 stood at

4,87,705; 2023 stood at 4,80,583 and 2022 stood at 4,61,312. Recently, this

Court in the case of In Re: Phalodi Accident v. National Highways Authority

of India and Ors.

13

had recognized the linkage between Article 21 of the

Constitution and the road safety of a commuter. It was observed:

“5. It is seen that National Highways constitute approximately 2% of India's

total road length but account for nearly 30% of all road fatalities. A road,

particularly a high-speed Expressway, must not become a corridor of peril

due to administrative lethargy or infrastructural gaps. The loss of even a

single life to avoidable hazards like illegal parking or blackspots etc.,

represents a failure of the State's protective umbrella. The ‘Right to Life’

enshrined under Article 21 of the Constitution of India is not merely a

guarantee against the unlawful taking of life, but a positive mandate upon

the State to ensure a safe environment where human life is preserved and

valued. Therefore, recognizing the safety of the commuter as an integral

facet of the right to live with dignity as a constitutional obligation under

Article 21 of Constitution of India, it is necessary in the interest to address

the systematic root causes that these interim directions are issued in exercise

of powers under Article 142 of the Constitution of India. We reiterate that

no pecuniary or administrative constraint can outweigh the sanctity of

human life, and the strict timelines provided herein reflect the urgency of

this constitutional obligation.”

(emphasis supplied)

13

2026 SCC OnLine SC 646. See also: Abhijeet

C.A. No. 14369 of 2025 Page 15 of 23

21. Similarly, the High Court of Judicature at Patna in Abhijeet Kumar Pandey v.

State of Bihar

14

had recognized the intrinsic relationship between Article 21 of

the Constitution and the right to safe travel. It was observed:

“110. We hold, that a right to safe travel is inherent to the right to free

movement under article 19(1)(d) and the right to life and liberty under

Article 21 of the Constitution of India.”

22. Considering the submissions discussed above, it is apparent that integration of

the enforcement system with technology is the need of the hour. Existing offline

technology for issuance of challans and road-safety management is required to

be integrated with e-models, specifically when it comes to ensuring compliance

with statutorily mandated insurance. There is a consensus of all stakeholders on

the above aspects.

23. Therefore, in the interest of justice, we issue the following directions, to be

enforced through the MoRTH and IRDA:

23.1. Currently, ANPR Cameras deployed on highways and roads are

equipped with a mechanism to catch and penalize road safety

violations such as high speed, red light jumping, driving on the

wrong side of the road, etc. Carrying this forward and as already

deployed by the MoRTH in certain states, ANPR Cameras are to be

integrated with data from the Insurance Information Bureau

(established under IRDA) and the VAHAN portal for issuance of

automatic e-challans to uninsured vehicles, in furtherance of the SOP

for Electronic Monitoring and Enforcement of Road Safety.

23.2. This Court is informed that as on date, there is no uniform

mechanism in place with State Police to verify insurance status on

14

2023 SCC OnLine Pat 279.

C.A. No. 14369 of 2025 Page 16 of 23

the ground. It is directed that State Police be provided with handheld

devices or downloadable apps, linked with the data from Insurance

Information Bureau (established under IRDA) and VAHAN portal

be supplied to the State Police. This is to monitor real-time insurance

status of vehicles and impose challans for violations, ensuring

compliance with mandatory insurance on the ground.

23.3. Upon notification of the amendment to Section 196 of the MVA,

strict compliance thereof is to be ensured.

23.4. As submitted by the IRDA, for private vehicles, a broad four-

layer structure is to be implemented for private vehicles. This would

bring clarity to various policy options for the vehicle-owner so as to

allow them to make an informed choice. The structure is as follows:

I. Third Party only policy – this policy shall be a base policy and

minimum cover as required by Section 146 of the MVA. The

pricing thereof will be fixed by a consultative process between

the IRDA and the Central Government.

II. Additional optional cover for the occupant(s)/pillion rider

(other than owner, driver and family of the insured) – this add-

on will be optional and available at an additional premium,

covering occupant(s)/pillion riders of the insured vehicle. The

pricing thereof will be determined by the respective insurance

companies.

III. Personal accident cover for the owner, driver and any

occupant(s)/pillion rider – this add-on will cover personal

accident i.e. death and/or permanent disability of the

C.A. No. 14369 of 2025 Page 17 of 23

occupant(s)/pillion riders of the insured vehicle including

owner, driver and family of the insured. The pricing thereof

will be determined by the respective insurance company.

IV. Own damage cover – This add-on cover will cover liability for

loss or damage to the insured vehicle itself.

Consequently, every customer, at the time of purchase of insurance,

will be issued a ‘customer option form', whether offline or online,

whereby they may ‘opt in’ via check box to the add-on options. A

broad template of which is as under:

S.No. Nature of cover Brief coverage details Choice of cover

which the customer

wishes to opt for

Premium

payable

1. Mandatory Third-

Party Only Policy

Coverage of third party

liability as per Section

146 of the Motor Vehicles

Act

✓ Rs._____/-

2. Optional Cover I

Legal Liability

Cover

Coverage of liability for

occupant(s)/pillion rider

(other than owner, driver

and family of the insured)

Rs._____/-

3. Optional Cover II

Personal Accident

Cover

Coverage of liability for

the owner, driver and any

occupant(s)/pillion rider

Rs._____/-

4. Optional Cover III

Own Damage

Cover

Coverage for

loss/damage to the

insured vehicle

Rs._____/-

The IRDA is at liberty to modify this template, if the need so arises.

23.5. The IRDA in consultation with GIC and insurance companies,

shall formulate uniform policy wordings for the above optional

covers. Needless to add, that the insurance companies may innovate

C.A. No. 14369 of 2025 Page 18 of 23

the coverage and determine the pricing of the Own Damage covers,

in consonance with market forces.

23.6. The suggestion of the IRDA for a consumer-friendly customer

information sheet will also have to be given to the prospective

customers outlining the above four-layered structure, i.e., who is

covered under mandatory and optional covers, is made mandatory for

the sale of motor-vehicle insurance, whether offline or online.

23.7. Another aspect to be considered is that this Court in S.

Rajaseekaran v. Union of India

15

on 12.07.2018, while noting the

large number of vehicles plying without third-party insurance, had

issued directions mandating purchase of third-party insurance for

three years for new cars and five years for two wheelers, at the time

of purchase/registration of new vehicles.

We notice that despite eight years having passed from the said

direction, a large number of vehicles remain uninsured. While the

IRDA and GIC have recommended that this period not be enhanced,

we are of the view that it is in the interest of road safety that the

period be enhanced by one year.

Therefore, it is directed that henceforth, third-party insurance for four

years for new cars and six years for new two wheelers be required to

be purchased. IRDA to immediately issue necessary directions.

15

(2018) 8 SCC 447.

C.A. No. 14369 of 2025 Page 19 of 23

23.8. The benefits of obtaining comprehensive motor-vehicle

insurance policies to be displayed in easy-to-read format on the

websites of the insurance companies.

23.9. Based upon the deliberations in Court, a pilot-project be

implemented allowing citizens to verify insurance status, and

ultimately assist with the implementation of the statutory mandate

under the MV Act. The insurance status to specify the kind of

insurance, whether mandatory (third party only) insurance or

comprehensive policy. The benefit is two-fold. At first, it will allow

citizens to know whether the vehicle they are travelling in or sending

goods in or transporting employees has valid insurance. Secondly, it

will allow for prompt reporting of uninsured vehicles.

23.10. As deliberated upon in Court, the IRDA in consultation with the

MoRTH, to deliberate and evolve a pilot-project whereby fuel for

vehicles to be linked with valid insurance status. In the absence

thereof, the vehicle concerned would be refused fuel at petrol pumps,

until such time that valid insurance is obtained. The benefit therein

is two-fold. Firstly, it will assist in identification of uninsured or

unregistered vehicles. Secondly, it will prompt the owners of these

vehicles to ensure that they have valid insurance status. Such projects

would ensure ground-level compliance with the statutory mandate of

Section 146 of the MVA. This may be done through the use of ANPR

cameras. The Ministry of Petroleum and Natural Gas, has in

principle, no objection to the same.

23.11. Lastly, based upon the deliberations in Court, and as rightly

submitted by the Ministry, we are cognizant of the number of road

C.A. No. 14369 of 2025 Page 20 of 23

accidents on national highways

16

and also the effect that long queues

at toll plazas have on road accidents. Consequently, the MoRTH is

to implement the said pilot projects as submitted above on certain

corridors, substituting the process of stopping at toll plazas with

automatic detection of vehicles passing through toll points.

24. Having already noticed above the average pendency of MACT cases as observed

in Shishupal (supra) and directions issued in General Insurance Counsel

(supra) and M.R. Krishna Murthi (supra), on the submissions put forth by Mr.

J.R. Midha, learned senior counsel, we pass the following directions:

24.1. The State Police to promptly file DAR along with relevant documents

such as FIR, MLC, post-mortem report, insurance policy, permit, etc.

before the concerned MACT, in pending cases relating to accidents prior

to 31.03.2022.

24.2. The State Police to assist with prompt service and production of

relevant witnesses before the concerned MACT, to ensure speedy disposal

of cases relating to accidents prior to 31.03.2022.

The above directions be forwarded by the registry of this Court to the Secretary,

High Court Legal Services Authority of all High Courts, to be forwarded to the

respective State Police.

25. We thank the learned senior counsels and all counsels for their invaluable

assistance in this matter.

16

Out of 4,80,583 road accidents in India in 2023, nearly 1/3

rd

i.e. 1,50,177 took place on national highways as per

Report of the MoRTH on Road Accidents in India, 2023.

C.A. No. 14369 of 2025 Page 21 of 23

26. Lastly, despite the larger public interest involved, we cannot lose sight of the

genesis of the appeal. This appeal is directed against the judgment and order

dated 30.07.2024 passed in Motor Accident Civil Miscellaneous Appeal No.

1659 of 2012 by the High Court of Telangana at Hyderabad, which, in turn, was

preferred against the order dated 08.12.2009 in M.V.O.P. No. 9 of 2003 by the

MACT, L.B. Nagar, Hyderabad.

27. The brief facts giving rise to this appeal are that on 13.07.1996, the deceased,

namely Mr. T. Ramu, was returning from Tirupathi to his village Venkanur in

his Maruti 800 vehicle bearing registration number AP 21A 1666. Near,

Singarayakonda at about 5:00 AM, an unknown lorry being driven in a rash and

negligent manner struck the car of the deceased from the back side. As a result

of the said accident, he suffered injuries and passed away during treatment.

28. An application seeking compensation was filed by the claimant-respondents,

being the legal representatives of the deceased, before the Tribunal under Section

166 of the MVA (later amended to Section 163-A), to the tune of Rs. 10,00,000/.

It was stated therein that the deceased was in the business of seafood and was

earning at least Rs. 1,00,000/- per annum. He was the sole breadwinner of his

family. The appellant insurance company was the insurer of the Maruti 800 car,

in which the deceased was travelling.

29. The Tribunal, vide its order dated 08.12.2009, held the claimant-respondents not

to be entitled to any compensation. The Tribunal relied upon the testimony of

the Assistant Manager of the appellant insurance company and observed that no

extra premium was paid to cover the personal risk of the owner’s vehicle.

C.A. No. 14369 of 2025 Page 22 of 23

30. Aggrieved thereof, the claimant-respondents preferred an appeal before the High

Court. It was stated therein that the Tribunal had erroneously absolved the

insurance company of its liability to pay compensation to the claimant-

respondents.

31. The High Court, vide, the impugned judgment, allowed the appeal and awarded

a compensation of Rs. 10,00,500/- to the claimant-respondents along with 7.5%

interest per annum. The Court observed that the policy in question is a

comprehensive policy and would cover the owner of the vehicle as well, who

was travelling in the car as a passenger. In the absence of any evidence qua the

monthly income of the deceased, the Court assessed his monthly income as Rs.

4,500/- on a notional basis.

32. Dissatisfied, the appellant insurance company is now before us. The significant

ground of challenge taken is that the Court below has erred in holding the

insurance company liable.

33. We have perused the submissions of the parties on this aspect.

34. It is well settled that in matters concerning motor accident claims, Courts should

not adopt a hyper-technical approach.

17

As rightly submitted by the claimant-

respondents, in accordance with the circular of the IRDA dated 16.11.2009,

insurance companies are liable to compensate for any occupant in the vehicle

under a comprehensive/package policy. Consequently, we find no reason to

disagree with the reasoning adopted by the High Court. The present Civil Appeal

is dismissed to that extent.

17

See: Surekha and Ors. v. Santosh and Ors. [(2021) 16 SCC 467].

C.A. No. 14369 of 2025 Page 23 of 23

35. All stakeholders to comply with the above directions and file responses before

14.08.2026. Appeal stands disposed of accordingly. For perusal of affidavits of

compliance, list on 18.08.2026 at 2 PM. Pending application(s), if any, shall

also stand disposed of.

…..…………… ………………… J

(SANJAY KAROL)

………………. …………………… J

(PRASHANT KUMAR MISHRA)

New Delhi,

August 04, 2026