No insurance coverage for legal heirs if accident due to rash driving of deceased: Supreme Court

In a landmark judgment, the Supreme Court of India has ruled that No insurance coverage for legal heirs if accident due to rash driving of deceased. The ruling reinforces the principle that no compensation is payable when the deceased is solely responsible for the accident.

The verdict came in the case of N.S. Ravisha v. United India Insurance Co. Ltd., where the deceased, N.S. Ravisha, died in a car accident on June 18, 2014, while driving from Mallasandra village to Arasikere town in Karnataka. His wife, son, and parents—also passengers in the car—sought Rs 80 lakh in compensation under Section 166 of the Motor Vehicles Act.

The Motor Accident Claims Tribunal and the Karnataka High Court had previously rejected the claim, concluding that Ravisha was driving at a high speed and lost control of the vehicle, resulting in the fatal crash. He was deemed a "self-tortfeasor"—a person responsible for their own harm—thereby disqualifying his legal heirs from claiming insurance compensation.

On July 3, 2025, a bench comprising Justices P.S. Narasimha and R. Mahadevan upheld the High Court’s decision. Dismissing the special leave petition, the Court observed that no interference was warranted in the lower court’s findings.

The judgment has significant legal implications. It confirms that insurance companies are not bound to compensate for injuries or deaths caused by the insured's own reckless actions. The Court reaffirmed the doctrine that compensation under Section 166 is contingent upon fault, and if the deceased is solely at fault, heirs cannot claim damages from the insurer.

Legal experts note that this ruling strengthens the contractual and legal position of insurers and serves as a cautionary precedent for policyholders. It underscores the importance of lawful and responsible driving, not just for public safety, but also to ensure continued insurance coverage.

This decision is expected to influence how future claims are assessed, particularly in cases involving single-vehicle accidents where the driver is also the victim.

Case details: [G. Nagarathna & Ors. v. G. Manjunatha & Anr. Decided on 2-07-2025]