Jharkhand HC Raises Motor Accident Compensation to ₹11.90 Lakhs, Rules Insurer Must Prove Policy Breach

The Jharkhand High Court Single Judge Bench dismissed an insurer's appeal and increased compensation for a motor accident death from ₹7.10 lakhs to ₹11.90 lakhs. The court ruled that an insurance company must specifically plead and prove a fundamental breach of policy terms before seeking pay-and-recover relief. The bench noted that no convincing evidence established the absence of a valid permit, and therefore liability remained with the insurer.

The case stemmed from a fatal motor accident involving the deceased's wife and four sons, who approached the Claims Tribunal at Palamau, Daltonganj. The tribunal had awarded ₹7,10,000 plus 6 per cent annual interest. The appellant-insurer challenged the award on two grounds: claiming the vehicle lacked a valid permit under Sections 149(2) and 134(c) of the Motor Vehicles Act, 1988, and disputing the compensation calculation method. The claimants countered that the vehicle was used for road-construction work and did not require a permit.

The court relied on Supreme Court precedent in National Insurance Co. Ltd. v. Swaran Singh (2004), establishing that the burden of proving policy breach rests with the insurance company raising such a plea.