Quick Summary: A Supreme Court case about a tragic motorcycle accident in Channapatna led to a debate over who should pay for the damages. The court decided that The New India Insurance Co. Ltd. must pay the compensation and then get the money back from the bus owner because the bus wasn't supposed to be on that route.
On October 7, 2014, a man named Srinivasa, also known as Murthy, sadly died in a motorcycle accident in Channapatna. He was hit by a vehicle driving recklessly, which led to his immediate death. His family, left without their main source of income, asked for money to make up for their loss.
The family asked for ₹50,00,000, saying that Srinivasa earned ₹15,000 per month from his businesses. The Tribunal first gave them ₹18,86,000 with 6% interest per year. Not satisfied with this amount, the family went to the High Court, which increased the compensation to ₹31,84,000, considering future earnings and personal expenses.
"The High Court reassessed the monthly income of the deceased at ₹15,750."
The New India Insurance Co. Ltd. argued that the bus involved took a wrong route. The bus was supposed to travel between Bengaluru and Mysore and not enter Channapatna, which they said broke the insurance policy rules.
"The route undertaken by the bus driver was not covered by the permit issued."
On October 29, 2025, the Supreme Court, led by Justice Sanjay Karol, agreed with the High Court's decision. The court used the "pay and recover" rule, which means The New India Insurance Co. Ltd. has to pay the compensation and then get the money back from the bus owner.
"Balancing the need for payment of compensation to the victim vis-à-vis the interests of the insurer, the order of the High Court... is entirely justified."
The decision shows how complicated insurance claims and route permits can be. While Srinivasa's family got the money they deserved, The New India Insurance Co. Ltd. was allowed to get the costs back from the bus owner. This decision ensures fair compensation while keeping the rules clear for insurance companies.
