Authority: High Court of Uttarakhand at Nainital

Order Date: 25 August 2026

Case Overview

  • Parties: Appellant – New India Assurance Co. Ltd.; Respondents – Indramani Sati and Smt. Deveshwari Devi (parents of the deceased Ratnesh Sati).
  • The claim arose under Section 166 of the Motor Vehicles Act, 1988 for death of Ratnesh Sati in a road accident on 28 February 2010 near Dulinda, Jwalpa Devi, Pauri district. The vehicle (No. UK11C/A-0162) was insured by the appellant under a Standard Commercial Vehicle Package Policy effective 17 August 2009 to 16 August 2010.
  • Respondents alleged rash and negligent driving by the driver caused the death and sought compensation. The insurer contended the driver lacked a valid licence and that policy conditions were breached, seeking to deny liability.
  • The Motor Accident Claims Tribunal, Chamoli (Gopeshwar) examined documentary evidence (registration certificate, tax receipt, insurance cover note, driving licence) and found the documents valid, the accident due to negligent driving, and the policy covered occupant liability. It calculated loss of dependency using notional income Rs 36,000 per annum, one‑third personal expenses, multiplier 11, arriving at Rs 2,64,000, and added funeral and other heads to total Rs 2,73,500, with interest at 6% per annum from filing to payment.
  • The appellant appealed, arguing that the deceased owner could not be treated as a third party under Section 166 and that the policy should not cover the occupant. The High Court referred to Supreme Court judgments (Oriental Insurance Co. Ltd. v. Surendra Nath Loomba, 2012; National Insurance Co. Ltd. v. Balakrishnan, 2013) establishing that a comprehensive/package policy covers liability of the occupant, including the owner‑driver.

Final Outcome

  • The High Court found no ground to interfere with the Tribunal’s findings.
  • The appeal was dismissed; the Tribunal’s award of Rs 2,73,500 with interest was affirmed.
  • The Court directed the Tribunal to release the awarded amount immediately to respondent‑claimant No. 2, together with accrued interest, adjusting any amount already released as per the Court’s order dated 6 June 2012.

Topics: Motor Accident Compensation, Insurance Liability