22 July 2024


High Court of Bombay

The Manager, HDFC Ergo General Insurance Co. Ltd. v. Kalpana and Ors.



Motor Vehicles

Breach of terms and conditions of motor vehicle insurance policy need not be considered at hearing for interim compensation

An insurer can plead an insurance contract to not be binding upon it at the final hearing to recover interim compensation from the driver/owner of the offending motor vehicle, but not at a hearing for interim compensation on a no-fault basis. In the instant case the insurer had appealed against a decision holding it jointly liable to pay interim compensation, and its claim that there existed no privity of contract with the driver of the offending vehicle was not considered. Noting that interim compensation served the social purpose of providing assistance to victims of vehicular accidents, the Court held that claimants did not need to plead and prove liability of the insurer and owner of the offending motor vehicle in strict accordance with the law. The insurer, after making the interim payment could recover the amount by way of compensation at interim stage from the owner of vehicle responsible for the accident.


Section 140 Motor Vehicles Act, 1988 Act Yallwwa (Smt.) and Others vs. National Insurance Company Ltd. and another MANU/SC/7662/2007
Oriental Insurance Ltd. vs. Mohiuddin Kureshi MANU/BH/0056/1993
Oriental Insurance Co. Ltd. vs. Nargis Premlal Janghade and Others MANU/MH/1399/2009

Tags : Motor interim compensation insurer privity

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