SC Ruled Insurance Firms For Denying Accident Claims Over Route Deviation

The Supreme Court has ruled that insurance companies cannot deny compensation to accident victims solely because the vehicle’s route deviated and it was in violation of the permit.

A bench comprising Justices Sanjay Karol and Prashant Kumar Mishra said the purpose of an insurance policy in the present context 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, therefore, 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,” the bench said.