K. Nagendra vs New India Insurance Co. Ltd 2025 INSC 1270 - Motor Accident -Pay & Recovery- Deviation From Prescribed Route
Motor Accident Compensation - Pay and Recover principle - The purpose of an insurance policy is to shield the owner/operator from direct liability when such an unforeseen/unfortunate incident takes place. To deny the victim/dependents of the victim compensation simply because the accident took place outside the bounds of the permit and, is outside the purview of the insurance policy, would be offensive to the sense of justice, for the accident itself is for no fault of his. Then, the Insurance Company most certainly ought to pay. (Para 9) When an Insurance Company takes on a policy and accepts payments of premium in pursuance thereto, it agrees to do so within certain bounds. The contract lays down the four corners within which such an insurance policy would operate. If that is the case, to expect the insurer to pay compensation to a third party, which is clearly outside the bounds of the said agreement would be unfair. (Para 10)
Case Info
Case name: K. Nagendra v. The New India Insurance Co. Ltd. & Ors.
- Neutral citation: 2025 INSC 1270.
- Coram: Justice Sanjay Karol and Justice Prashant Kumar Mishra.
- Judgment date: October 29, 2025.
- Disposition: Appeals dismissed; no order as to costs.
Caselaws and Citations
- National Insurance Co. Ltd. v. Swaran Singh, (2004) 3 SCC 297.
- Amrit Paul Singh & Anr. v. TATA AIG General Insurance Co. Ltd. & Ors., (2018) 7 SCC 558.
- Shamanna v. Oriental Insurance Co. Ltd., (2018) 9 SCC 650.
- New India Assurance Co. v. Kamla, (2001) 4 SCC 342.
- Parminder Singh v. New India Assurance Co. Ltd., (2019) 7 SCC 217.
- S. Iyyapan v. United India Insurance Co. Ltd., (2013) 7 SCC 62.
- M/s Chatha Service Station v. Lalmati Devi & Ors., 2025 SCC OnLine SC 756.
Statutes/Laws Referred
- Motor Vehicles Act, 1988:
- Section 66 (permit requirement and exceptions).
- Section 149 (insurer’s liability, sub-sections (1), (2), (5), (7)).
- Central Motor Vehicles Rules, 1989:
- Rule 9 (hazardous goods).
