Reliance General Insurance Company Ltd. vs Avtar Singh & Ors. 2026 INSC 625 -Motor Accident Compensation - Insurance- Precedents

Motor Accident Compensation - Insurance - The purpose for insurance is to ensure that the person insured is covered in real terms for an eventuality which may be unfortunate, but is an incidence of life and cannot be shred away from. (Para 9) [Context: The Supreme Court set aside the Delhi High Court’s open-ended direction requiring the insurer to keep replenishing a deposit towards future attendant charges for the claimant’s lifetime and instead quantified a lump sum compensation of Rs. 50,00,000 as full and final. ]

Motor Accident Compensation - Precedents on compensation — Nature and use; each case fact-specific — In this case, the insurer relied on previous Supreme Court decisions to seek a cap on compensation, SC held that decisions on compensation are at best “persuasive in nature” and each claim “has to be dealt totally individually on the facts and circumstances of that particular case”. (Para 11)