The Karnataka High Court directed Royal Sundaram to provide a Rs.10,00,000 free Medical Insurance Policy to the respondents.
Petitioners contend that this direction is beyond the scope of Section 168 of the Motor Vehicles Act, 1988, and therefore unlawful.
Findings & Observations
The Supreme Court observed that the High Court’s directive exceeds the statutory limits of Section 168, which does not empower a insurer to issue a free policy of the stated amount.
Penalties / Settlements / Directions
Delay condoned for filing the petition.
Notice issued to the respondents, to be returned within six weeks of the order.
The portion of the High Court award directing the free medical insurance policy is stayed pending further determination.
Corrective Actions & Future Obligations
Respondents must file the required notice within the stipulated six‑week period.
The stay on the free‑policy award remains in effect until the Supreme Court decides on the merits.
Final Ruling & Enforcement
The Supreme Court stays the High Court’s order to provide the Rs.10 lakh free medical policy.
The matter will proceed based on the notice filed, and the stay will continue until a final decision is rendered.