Supreme Court reviews legality of accident compensation for heirs of owner-drivers.
SC REFERS KEY QUESTION ON MOTOR VEHICLE ACCIDENT COMPENSATION TO LARGER BENCH
CASE SUMMARY – In Wakia Afrin vs. National Insurance Co., a minor sought compensation under Section 163A of the Motor Vehicles Act for her parents’ death in a car accident. Though MACT granted compensation, the High Court dismissed the claim, stating a dead person can’t be a respondent. The Supreme Court disagreed, holding Section 163A’s non-obstante clause overrides restrictive interpretations and covers no-fault liability. It observed conflicting precedents on whether heirs of the deceased owner-driver can claim compensation. Recognizing the legal ambiguity, the Court referred the issue to a larger bench for authoritative clarification.
| ASPECTS | DETAILS |
| Case Title | Wakia Afrin (Minor) vs. M/s National Insurance Co. Ltd. |
| Introduction | A minor, Wakia Afrin, filed for compensation under Section 163A of the Motor Vehicles Act for the death of both her parents in a car accident. |
| Factual Background | Her parents died in a car crash due to tyre burst. Her father, also the vehicle’s owner, was shown as respondent despite being deceased. MACT awarded compensation; High Court dismissed claim citing deceased owner can’t be a respondent. |
| Legal Issues | Whether a legal heir of the deceased owner-driver can claim compensation under Section 163A. |
| Applicable Law | Motor Vehicles Act, 1988 (Sections 147, 149, 155, 163A, 166) |
| Analysis | Examined prior case laws: Dhanraj, Jhuma Saha, Ningamma, etc. Highlighted the non-obstante clause in Section 163A, suggesting it overrides policy exclusions. Emphasized that the section does not require proof of negligence. |
| Conclusion | The bench disagrees with previous decisions restricting Section 163A to third-party claims and refers the issue to a larger bench for authoritative interpretation. |
| Current Scenario | Matter referred to the Hon’ble Chief Justice of India for placement before a larger bench for final determination. |
“Section 163A is a special provision overriding the Act, any law, or insurance instrument.”
SOURCE – SUPREME COURT OF INDIA
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