Supreme Court clarifies insurer liability in utility vehicle accident case (2025).
SC HOLDS INSURER LIABLE IN UTILITY VEHICLE ACCIDENT CASE
CASE SUMMARY – In Shyam Lal v. Shriram General Insurance Co. Ltd. (2025), the Supreme Court dealt with liability concerning a Mahindra Bolero Camper utility van involved in a fatal accident. The High Court had directed “pay and recover,” holding that the insurance policy did not cover passengers. The Supreme Court clarified that the vehicle was a contract carriage with seating for 4+1 and not a goods vehicle, thus covered by insurance. It found no misuse proven and held the insurer liable to indemnify fully. The Tribunal’s award was restored with a minor modification of deducting one-third towards personal expenses in one claim.
| ASPECTS | DETAILS |
| Case Title | Shyam Lal vs. Shriram General Insurance Co. Ltd. & Others |
| Introduction | Appeal by vehicle owner against High Court’s “pay and recover” order concerning liability of insurer for accident claims. |
| Factual Background | Accident involving a Mahindra Bolero Camper utility van led to multiple deaths and injuries. Claims were filed under MACT. High Court ordered insurer to pay and recover from owner. |
| Legal Issues |
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| Applicable Law |
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| Analysis | SC held utility van registered as 4+1 passengers, contract carriage, not goods vehicle. Policy covered passengers. No valid ground for “pay and recover.” Evidence confirmed 4 passengers + pedestrians. |
| Conclusion | High Court order set aside. Insurer held liable to indemnify fully. Only modification: 1/3rd deduction for personal expenses in one award (MACT Case No. 134/2014). |
| Current Scenario | Appeals allowed, Tribunal’s award restored with minor modification. Liability remains with Shriram General Insurance Co. Ltd. |
“A utility vehicle registered as a contract carriage cannot be treated as a goods vehicle; insurer cannot wriggle out of liability.”
SOURCE – SUPREME COURT OF INDIA
READ ALSO – SC DISMISSES APPEAL IN INSURANCE DEATH COMPENSATION CASE
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