THE DIVISIONAL CONTROLLER vs MARENNA @ MAREPPA
- Court
- Karnataka High Court
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MFA No. 200595 of 2023
R
CNR: KAHC030007102023
IN THE HIGH COURT OF KARNATAKA
KALABURAGI BENCH
ND
DATED THIS THE 2 DAY OF SEPTEMBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE K V ARAVIND
MISCL. FIRST APPEAL NO. 200595 OF 2023 (MV-I)
BETWEEN:
THE DIVISIONAL CONTROLLER,
NEKRTC, KALABURAGI DIVISION,
KALABURAGI,
NOW REPRESENTED BY ITS CHIEF LAW OFFICER,
NEKRTC, CENTRAL OFFICES, SARIGE SADANA,
KALABURAGI-585102.
…APPELLANT
(BY SMT. SANGEETA BHADRASHETTY, ADVOCATE)
AND:
MARENNA @ MAREPPA S/O PIDDAPPA KOLLI,
AGE: 43 YEARS, OCC: GOUNDI NOW NIL,
R/O DEEVALAGUDDA,
TQ. SHORAPUR AND
DIST. YADGIR-585224.
…RESPONDENT
(RESPONDENT SERVED AND UNREPRESENTED)
THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT,
PRAYING TO- ALLOW THIS APPEAL BY SETTING ASIDE THE
IMPUGNED JUDGMENT AND AWARD IN M.V.C. NO.154/2020,
DATED 10.03.2022, BY THE SENIOR CIVIL JUDGE AND MACT,
AT SHORAPUR.
Digitally
signed by
VINUTHA B S
Location: High
Court of
Karnataka
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THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE K V ARAVIND
ORAL JUDGMENT
Heard Smt. Sangeeta Bhadrashetty, learned counsel
appearing for the appellant-Corporation. There is no
representation for the respondent-claimant.
2. This appeal is filed by the Corporation, disputing its
liability and assailing the judgment and award dated
10.03.2022 passed in MVC No.154/2020 by the Senior Civil
Judge and MACT, Shorapur (for short, “the Tribunal”).
3. The claimant filed a petition under Section 166 of the
Motor Vehicles Act, 1988 (for short, 'the M.V. Act') seeking
compensation for the injuries sustained in the accident that
occurred on 11.09.2017 involving a motorcycle bearing
registration No. KA-33/L-6759 and a bus bearing registration
No. KA-38/F-0799. The Corporation filed its objections denying
the averments made in the petition and contending that the
accident occurred due to the negligence of the claimant.
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3.1 The Tribunal, upon consideration of the evidence on
record, held that the accident occurred due to the negligence of
the driver of the bus and awarded compensation of
Rs.2,30,443/-, directing the Corporation to pay the same.
4. Smt. Sangeeta Bhadrashetty, learned counsel appearing
for the Corporation, submits that the claimant was riding the
motorcycle with two pillion riders, amounting to triple riding,
and that the motorcycle was not covered by a valid driving
licence and insurance policy. It is submitted that the claimant
had violated the provisions of the M.V. Act and had thereby
contributed to the occurrence of the accident.
4.1 It is further submitted that, as per the sketch annexed to
the Crime Detail Form at Ex.P4, the accident occurred due to
the negligence of the claimant. Hence, the Tribunal erred in
holding the driver of the bus negligent and fastening the
liability on the Corporation.
5. Though the respondent has been duly served, there is no
representation on behalf of the respondent.
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6. An interesting issue has been raised by the learned
counsel for the Corporation regarding the use of vehicles
without a valid driving licence and insurance policy, resulting in
accidents and exposing the victims to numerous hurdles in
securing just compensation. In that view of the matter, this
Court requested Sri. Sanganagouda Biradar, Sri. Nagraj Patil,
Sri. Sharanabasappa M. Patil and Sri. Manjunath Mallayya
Shetty, learned counsels who were present in the Court and
regularly appear in motor vehicle accident cases, to assist the
Court.
7. Considered the submissions made by the learned counsel
for the appellant-Corporation and perused the material on
record.
8. The date of the accident, involvement of the vehicle and
the cause of injuries are not in dispute. It is not in dispute that
the injured was riding the motorcycle without a valid driving
licence and that the motorcycle was not covered by a valid
insurance policy. The injured was also riding the motorcycle
with two pillion riders at the time of the accident. It is pleaded
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that the accident occurred due to the sudden stopping of the
two-wheeler in the middle of the road.
9. Before considering the question of negligence, it is
relevant to note that the motorcycle was admittedly not
covered by a valid insurance policy. Though the claimant stated
in his evidence that he possessed a driving licence, the same
has not been produced. In the absence of such evidence, an
adverse inference has to be drawn that the claimant did not
possess a valid driving licence at the time of the accident.
10. As per Ex.P4, the Crime Detail Form along with the spot
sketch, it is seen that the accident occurred in the middle of the
road. Even assuming that the bus had occupied half of the
road, sufficient space was available for the two-wheeler to pass
safely. But for the negligence of the claimant, the accident
could not have occurred. It appears that the Tribunal, taking a
liberal approach with a view to ensuring that some
compensation was paid to the injured claimant, has attributed
negligence to the driver of the bus.
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11. The mere filing of a charge sheet against the driver of the
bus cannot, by itself, be conclusive of negligence unless the
same is corroborated by other evidence on record. The finding
in the charge sheet attributing negligence to the driver of the
bus is contrary to the contents of Ex.P4.
12. This Court notices more than one substantive violation of
the provisions of the M.V. Act in the present case.
Firstly, riding the motorcycle without a valid driving licence;
secondly, use of the motorcycle without a valid insurance
policy; and thirdly, triple riding. The question that arises for
consideration is whether, when the claimant himself has failed
to comply with the foundational requirements prescribed under
the Motor Vehicles Act, which prohibit the use of a vehicle
without a valid driving licence and insurance policy and carrying
passengers beyond the permitted capacity, a liberal approach
can be adopted while determining negligence.
13. In the present case, all three violations are found. The
claimant, having breached the statutory mandate, seeks
compensation before this Court. Though the M.V. Act is a
beneficial legislation, the principle of liberal interpretation
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cannot be extended to condone violations of its mandatory
provisions, particularly when such provisions are intended to
ensure road safety, maintain road discipline and protect the
interests of the public and the community at large. Extending
such liberal interpretation in cases involving clear violations of
the statutory mandate would have the effect of rewarding or
giving a premium to such violations.
14. This Court has consistently held that, where the rider who
is the claimant before the Court does not possess a valid
driving licence, negligence to the extent of 30% can be
attributed to him. In the present case, however, the claimant
was not only riding the motorcycle without a valid driving
licence, but the motorcycle was also not covered by a valid
insurance policy and he was carrying two pillion riders,
amounting to triple riding. Triple riding, in the circumstances of
the present case, has further increased the risk to the rider
himself and is attributable to his negligence.
15. In view of the aforesaid circumstances, this Court finds it
appropriate to attribute 50% negligence to the claimant/rider
for the occurrence of the accident.
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16. It is noticed in a number of cases, rather, in almost all
cases, that when vehicles involved in accidents are seized by
the police, the vehicles are released by the police authorities
after inspection by the competent Road Transport Authority. In
cases where violations such as absence of a valid driving
licence or insurance policy are found, penal provisions are
invoked, fines are imposed and charge sheets are filed.
However, the vehicles are thereafter released.
17. This Court requested the learned Additional State Public
Prosecutor to assist the Court with regard to the measures
being taken by the police authorities to ensure compliance with
the requirement of a valid driving licence and insurance policy
before releasing the seized vehicle. It is submitted that no such
power is conferred upon the police authorities to retain the
vehicle on the aforesaid grounds.
18. If a vehicle involved in an accident is found to have been
driven without a valid driving licence or without a valid
insurance policy and is released merely upon imposition of a
fine, the violation of the provisions of the M.V. Act continues. In
the absence of any specific provision governing such a
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situation, this Court cannot ignore the violation of the statutory
provisions and permit persons who have violated the provisions
of the M.V. Act to continue to do so with impunity. Such
violation is not merely a breach of the provisions of the M.V.
Act; it has serious consequences for society and the community
at large.
19. When a person driving a vehicle without a valid driving
licence and insurance policy causes an accident involving an
innocent road user, and the victim approaches the Tribunal
seeking just compensation, the Tribunal is often faced with
difficulty in ensuring recovery of the compensation awarded
from the owner of the vehicle. This Court has, in a number of
cases, noticed instances where collusive charge sheets are filed
against another vehicle having a valid driving licence and
insurance policy, with a view to fastening liability on such
vehicle. The innocent claimant is thereby compelled to undergo
a prolonged and cumbersome process to secure compensation.
In several cases, even the compensation awarded by the Court
may ultimately not reach the claimant.
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20. This Court has also noticed instances of vehicles having
valid driving licences and insurance policies being introduced or
sponsored for the purpose of accident claims, when the vehicle
actually involved in the accident is found to have been driven
without a valid driving licence and without a valid insurance
policy.
20.1 The Hon'ble Supreme Court in the case of
Oriental
Insurance Co. Ltd. v. Tuni Pati, 2026 SCC OnLine SC
1710 , noticed the increasing trend of implication of vehicles to
claim compensation and issued series of guidelines to avoid
such incidents. The relevant paragraphs read as under:
" 3. The matter started on an innocuous issue of
whether a vehicle which was said to be the cause of an
accident, was the real vehicle involved in the said
accident. But as the events unfolded, an exercise has
been taken pan India, pursuant to the order of this Court
in the present proceedings to unearth whether fraudulent
claims are being filed, that too, in a fixed pattern, where
the same vehicle is shown to be involved in multiple
accidents, which results in such frivolous claims being
allowed. This appeared to be a fraud of enormous
proportion and has persuaded the Court to enlarge the
scope of the present proceedings to unravel and also to
check such fraudulent claims, which ultimately result in
not only undue financial stress on the Insurance
Companies, but also on the system and one of the fallouts
is that the common genuine consumer has to pay a higher
premium, just because the Insurance companies have to
ensure their financial viability.
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4. At this juncture, we called upon Mr. Jagdish Chandra
Solanki, learned counsel to assist the Court on various
issues as he has experience in these matters, and has
also had the privilege of working in an Insurance
Company, where, according to him, he came across
various irregularities, acts of commission/omission and
lack of oversight, which had facilitated the frauds to
perpetuate. He has suggested that the Court may implead
the Insurance Regulatory and Development Authority
(IRDA) under the Ministry of Finance, Government of
India, as a party respondent, as all the Insurance
Companies ultimately are governed by the regulations
made by IRDA. He further submitted that a common
portal be developed where all insurance claims be shown
so that there can be ready access by all the Insurance
Companies with regard to any claim which may be filed,
so as to cross check the records of the other companies
as to whether such vehicle/person/institution/entity is
involved in repeated and multiple claims being made on a
regular basis. He submits that as of now two portals, i.e.,
VAHAN and SARATHI are available, which basically cater
to data collection and the submission is that if they can
also be integrated with the common portal, there can be
ease of tracking all such claims, both with regard to the
veracity of the accident, if any, the vehicle involved and
the exact place where the accident has occurred.
5. A suggestion has also been made by Ms. Rupali
Samuel, learned Standing Counsel for the State of Tamil
Nadu that the Ministry of Road Transport and Highways,
Government of India has a portal named E-detailed
Accident Report (EDAR), which tracks accidents on the
National Highways across India. It was submitted that if
the same can be integrated with the other portals which
carry such data as also with the portal of the IRDA, the
authenticity and correctness of the accident occurring and
the vehicle involved can be addressed more readily and
conveniently.
6. Learned counsel for the State of Uttar Pradesh submits
that a special SIT was constituted for the purposes of
verification of these claims relating to complaints being
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received by the insurance companies indicating potential
frauds, was pursuant to the orders passed by a
Coordinate Bench of this Court in SLP(Civil) No.
1110/2017 titled “Safiq Ahmad v. ICICI Lombard General
Insurance Co. Ltd.”. She submits that till recently, 2188
complaints were received, in which, upon inquiry, over
1029 were investigated and 231 FIRs have been lodged
against 533 accused persons. We appreciate the action
taken by the State of Uttar Pradesh in the matter. We are
informed that other States might have also followed the
procedure. However, for the present, we are not going
into that individually.
7. A fresh direction is issued to all the States to constitute
a special dedicated SIT for such purposes at the State
level. All complaints by the Insurance Companies be
forwarded to the said body, which will be looked into
expeditiously. The States are directed to provide sufficient
hands to the SIT for completion of the investigations. The
States should also disclose with regard to the procedure
they have adopted for investigating in the present matter.
8. At this point, the Court deems it appropriate to indicate
that it shall be the responsibility of the Insurance
Companies that all claims indicative of fraud are
forwarded to the SIT and pick and choose approach is not
done. The Court will hold the top most management of
the concerned Insurance Companies accountable if it is
found that there has been selective forwarding of the
cases to the SIT of the concerned State. Any
recommendation by the SIT or FIR lodged against the
officers of the Insurance Companies shall also be taken
cognizance of and appropriate action on the departmental
side shall also be initiated against such officials by the
concerned Insurance Companies, without any delay.
9. The Insurance Companies shall file their affidavits as to
what action has been taken by them in terms of what has
been indicated hereinabove, both with regard to the cases
referred to the SIT, as also the in-house action taken
against the officials, who may play a role prejudicial to
the interest of the Company and facilitated the fraud
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which was attempted or committed by the parties
concerned.
10. Let the IRDA be impleaded as respondent No. 104.
Similarly, the Ministry of Finance, though the Secretary,
Union of India be impleaded as respondent No. 105; the
Ministry of Road Transport and Highways through the
Secretary be impleaded as respondent No. 106; the
General Insurance Council (GIC), which we are informed
is the overall body under the IRDA which is responsible
for coordinating among the Insurance Companies and also
laying down general policies, be also impleaded as
respondent No. 107.
11. Notices shall be sent to the newly added respondents
by the Registry forthwith and they shall also file their
affidavits giving details of what is their responsibility at
present, how they discharge the same and what,
according to them, could be the steps which are required
to be taken, meaning thereby that they shall give their
suggestions how to handle or take care of the situation,
which the Court is taking note of and considering in the
present proceedings.
12. The matters be listed on 23.09.2026 at 2.00 p.m.
13. On the next date, learned counsel for all the parties
should be ready with a one page note which would be a
precis/summary of their affidavits for the Court's ready
reference.
14. After the order was dictated, a suggestion has come
from Mr. Solanki, learned counsel, that wherever the
Insurance claim is negated by the concerned MACT on the
ground of fraud/collusion, the concerned Insurance
Company would carry out an in-house appraisal of the
said case and also forward details of the same to the SIT
of the concerned State in which the incident has occurred,
for action. We find the suggestion to be useful and
relevant. Accordingly, a direction is issued to the
Insurance Companies that such matters where the claim
is negated on the ground of fraud or collusion, the said
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Insurance Company shall immediately forward the details
of the said case to the SIT of the State where the claim is
raised and also carry out an in-house investigation with
regard to whether there was contributory collusion by its
officers."
20.2 The Hon’ble Supreme Court, in National Insurance Co.
Ltd. v. Thungala Dhana Laxmi, 2026 SCC OnLine SC 1486 ,
taking note of the large number of vehicles plying without valid
insurance policies, issued several directions to ensure
compliance with the statutory requirement of compulsory
insurance. The relevant paragraphs read as follows:
" Our View
16. An unfortunate reality of road safety in India is
that despite the existence of a statutory framework
mandating third-party motor vehicle insurance, the
compliance thereof is found to be lacking. Consequently,
victims or families affected by motor accidents often have
to run pillar to post in order to receive compensation.
11
Recently, in Shishu Pal @ Shish Ram v. Surjeet , this
Court had pointed out a pendency of over four years in
more than 50% of motor accident claim cases.
17. This situation is compounded when the vehicle in
question has no valid insurance policy. It is shocking to
learn that nearly 56% of vehicles plying on Indian roads
remain uninsured as per the Report of the Standing
Committee on Finance 2024-25, titled ‘Action taken by
the Government on the Observations/Recommendations
contained in Sixty Sixth Report on the subject -
Performance Review and Regulation of Insurance Sector’,
dated December 2024. In absolute terms, the stark figure
of uninsured vehicles stands at 16.54 crore vehicles out of
12
30.48 crore vehicles. The consequent effect is that the
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statutory safeguard of victim compensation is often
delayed, if not defeated. The object behind mandatory
insurance under Section 146 of the MVA is not just that
victims of road accidents are compensated, it is also that
they are not drawn into prolonged litigation.
18. The result of vehicles remaining uninsured is that the
victims of the accident and their families have no recourse
to adequate compensation, within a reasonable time
period. They often have to enter into prolonged litigation
concerning the quantum as well as liability for
compensation. The consequence is even more severe for
families where the victim is deceased or has suffered
permanent disability, as the financial impact on the family
is significantly heightened.
19. This is further compounded by a number of vehicles
not possessing valid or active registration. Therein, the
process of tracing the identity of the driver/owner
involved in the accident becomes improbable and time-
consuming. Such circumstances defeat the very purpose
and statutory mandate behind the MVA.
20. The number of road accidents in India also points
towards the scale of this problem. As per response to
Unstarred Question No. 1227 of the Rajya Sabha,
answered on 10.12.2025, the number of road accidents
for 2024 stood at 4,87,705; 2023 stood at 4,80,583 and
2022 stood at 4,61,312. Recently, this Court in the case
of In Re: Phalodi Accident v. National Highways Authority
13
of India had recognized the linkage between Article 21
of the Constitution and the road safety of a commuter. It
was observed:
“5. It is seen that National Highways constitute
approximately 2% of India's total road length but
account for nearly 30% of all road fatalities. A road,
particularly a high-speed Expressway, must not
become a corridor of peril due to administrative
lethargy or infrastructural gaps. The loss of even a
single life to avoidable hazards like illegal parking
or blackspots etc., represents a failure of the
State's protective umbrella. The ‘Right to Life’
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enshrined under Article 21 of the Constitution of
India is not merely a guarantee against the
unlawful taking of life, but a positive mandate upon
the State to ensure a safe environment where
human life is preserved and valued. Therefore,
recognizing the safety of the commuter as an
integral facet of the right to live with dignity as a
constitutional obligation under Article 21 of
Constitution of India, it is necessary in the interest
to address the systematic root causes that these
interim directions are issued in exercise of powers
under Article 142 of the Constitution of India. We
reiterate that no pecuniary or administrative
constraint can outweigh the sanctity of human life,
and the strict timelines provided herein reflect the
urgency of this constitutional obligation.”
(emphasis supplied)
21. Similarly, the High Court of Judicature at Patna in
14
Abhijeet Kumar Pandey v. State of Bihar had recognized
the intrinsic relationship between Article 21 of the
Constitution and the right to safe travel. It was observed:
“ 110 . We hold, that a right to safe travel is
inherent to the right to free movement under article
19(1)(d) and the right to life and liberty under
Article 21 of the Constitution of India.”
22. Considering the submissions discussed above, it is
apparent that integration of the enforcement system with
technology is the need of the hour. Existing offline
technology for issuance of challans and road-safety
management is required to be integrated with e-models,
specifically when it comes to ensuring compliance with
statutorily mandated insurance. There is a consensus of
all stakeholders on the above aspects.
23. Therefore, in the interest of justice, we issue the
following directions, to be enforced through the MoRTH
and IRDA:
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23.1. Currently, ANPR Cameras deployed on highways
and roads are equipped with a mechanism to catch and
penalize road safety violations such as high speed, red
light jumping, driving on the wrong side of the road, etc.
Carrying this forward and as already deployed by the
MoRTH in certain states, ANPR Cameras are to be
integrated with data from the Insurance Information
Bureau (established under IRDA) and the VAHAN portal
for issuance of automatic e-challans to uninsured
vehicles, in furtherance of the SOP for Electronic
Monitoring and Enforcement of Road Safety.
23.2. This Court is informed that as on date, there is no
uniform mechanism in place with State Police to verify
insurance status on the ground. It is directed that State
Police be provided with handheld devices or downloadable
apps, linked with the data from Insurance Information
Bureau (established under IRDA) and VAHAN portal be
supplied to the State Police. This is to monitor real-time
insurance status of vehicles and impose challans for
violations, ensuring compliance with mandatory insurance
on the ground.
23.3. Upon notification of the amendment to Section 196
of the MVA, strict compliance thereof is to be ensured.
23.4. As submitted by the IRDA, for private vehicles, a
broad four-layer structure is to be implemented for
private vehicles. This would bring clarity to various policy
options for the vehicle-owner so as to allow them to make
an informed choice. The structure is as follows:
I. Third Party only policy - this policy shall be a
base policy and minimum cover as required by
Section 146 of the MVA. The pricing thereof will be
fixed by a consultative process between the IRDA
and the Central Government.
II. Additional optional cover for the
occupant(s)/pillion rider (other than owner, driver
and family of the insured) - this add-on will be
optional and available at an additional premium,
covering occupant(s)/pillion riders of the insured
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vehicle. The pricing thereof will be determined by
the respective insurance companies.
III. Personal accident cover for the owner,
driver and any occupant(s)/pillion rider - this add-
on will cover personal accident i.e. death and/or
permanent disability of the occupant(s)/pillion
riders of the insured vehicle including owner, driver
and family of the insured. The pricing thereof will
be determined by the respective insurance
company.
IV. Own damage cover - This add-on cover will
cover liability for loss or damage to the insured
vehicle itself.
Consequently, every customer, at the time of purchase
of insurance, will be issued a ‘customer option form’,
whether offline or online, whereby they may ‘opt in’ via
check box to the add-on options. A broad template of
which is as under:
xxxxxx
The IRDA is at liberty to modify this template, if the
need so arises.
23.5. The IRDA in consultation with GIC and insurance
companies, shall formulate uniform policy wordings for
the above optional covers. Needless to add, that the
insurance companies may innovate the coverage and
determine the pricing of the Own Damage covers, in
consonance with market forces.
23.6. The suggestion of the IRDA for a consumer-friendly
customer information sheet will also have to be given to
the prospective customers outlining the above four-
layered structure, i.e., who is covered under mandatory
and optional covers, is made mandatory for the sale of
motor-vehicle insurance, whether offline or online.
23.7. Another aspect to be considered is that this Court in
15
S. Rajaseekaran v. Union of India on 12.07.2018, while
noting the large number of vehicles plying without third-
party insurance, had issued directions mandating
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purchase of third-party insurance for three years for new
cars and five years for two wheelers, at the time of
purchase/registration of new vehicles.
We notice that despite eight years having passed from
the said direction, a large number of vehicles remain
uninsured. While the IRDA and GIC have recommended
that this period not be enhanced, we are of the view that
it is in the interest of road safety that the period be
enhanced by one year.
Therefore, it is directed that henceforth, third-party
insurance for four years for new cars and six years for
new two wheelers be required to be purchased. IRDA to
immediately issue necessary directions.
23.8. The benefits of obtaining comprehensive motor-
vehicle insurance policies to be displayed in easy-to-read
format on the websites of the insurance companies.
23.9. Based upon the deliberations in Court, a pilot-
project be implemented allowing citizens to verify
insurance status, and ultimately assist with the
implementation of the statutory mandate under the MV
Act. The insurance status to specify the kind of insurance,
whether mandatory (third party only) insurance or
comprehensive policy. The benefit is two-fold. At first, it
will allow citizens to know whether the vehicle they are
travelling in or sending goods in or transporting
employees has valid insurance. Secondly, it will allow for
prompt reporting of uninsured vehicles.
23.10. As deliberated upon in Court, the IRDA in
consultation with the MoRTH, to deliberate and evolve a
pilot-project whereby fuel for vehicles to be linked with
valid insurance status. In the absence thereof, the vehicle
concerned would be refused fuel at petrol pumps, until
such time that valid insurance is obtained. The benefit
therein is two-fold. Firstly, it will assist in identification of
uninsured or unregistered vehicles. Secondly, it will
prompt the owners of these vehicles to ensure that they
have valid insurance status. Such projects would ensure
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ground-level compliance with the statutory mandate of
Section 146 of the MVA. This may be done through the
use of ANPR cameras. The Ministry of Petroleum and
Natural Gas, has in principle, no objection to the same.
23.11. Lastly, based upon the deliberations in Court, and
as rightly submitted by the Ministry, we are cognizant of
16
the number of road accidents on national highways and
also the effect that long queues at toll plazas have on
road accidents. Consequently, the MoRTH is to implement
the said pilot projects as submitted above on certain
corridors, substituting the process of stopping at toll
plazas with automatic detection of vehicles passing
through toll points.
24. Having already noticed above the average pendency
of MACT cases as observed in Shishupal (supra) and
directions issued in General Insurance Counsel (supra)
and M.R. Krishna Murthi (supra), on the submissions put
forth by Mr. J.R. Midha, learned senior counsel, we pass
the following directions:
24.1. The State Police to promptly file DAR along with
relevant documents such as FIR, MLC, post-mortem
report, insurance policy, permit, etc. before the concerned
MACT, in pending cases relating to accidents prior to
31.03.2022.
24.2. The State Police to assist with prompt service and
production of relevant witnesses before the concerned
MACT, to ensure speedy disposal of cases relating to
accidents prior to 31.03.2022.
The above directions be forwarded by the registry of
this Court to the Secretary, High Court Legal Services
Authority of all High Courts, to be forwarded to the
respective State Police.
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21. Even where the Tribunal fastens liability upon the owner
of the vehicle in cases involving absence of a valid driving
licence and insurance policy, the owner may not possess the
financial capacity to satisfy the award. Consequently, the award
passed by the Tribunal may remain only on paper, thereby
defeating the very object and purpose of the beneficial
legislation.
22. Whenever cases involving violations of the Motor Vehicles
Act are brought before the Court or the police authorities, steps
should be taken to ensure that the seized vehicles are covered
by valid insurance policies, so as to prevent prejudice to third
parties. Implementation of this measure would minimise the
risk of prejudice to third parties, act as a deterrent against non-
compliance, and encourage adherence to the statutory
requirement of compulsory insurance.
23. Some of the vehicle owners appear to exhibit greater
attachment to their vehicles than to compliance with the law. In
view of the increasing instances of vehicles plying without valid
insurance policies, and with a view to bringing about a change
in the behavior of the public and vehicle owners towards
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compliance with the law, this Court is of the considered opinion
that appropriate directions are required to be issued to the
competent authorities to ensure the production and verification
of a valid insurance policy covering the vehicle before releasing
any seized vehicle. Such compliance shall be insisted upon even
where the vehicle is produced before the jurisdictional
Magistrate for release in connection with any offence.
Accordingly, this Court is inclined to issue the following
guidelines and directions.
24. In the light of the above, the following directions are
issued:
a) The Director General and the Inspector General of
Police is hereby directed to take necessary steps to
instruct all the police authorities across the State,
directing them to release seized vehicles involved in
any offence only after the valid insurance policy
covering the vehicle is produced.
b) The jurisdictional Courts are hereby directed to
ensure that seized vehicles are ordered to be
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released only upon producing a valid insurance
policy.
c) The steps taken by the Director General and the
Inspector General of Police pursuant to the aforesaid
directions shall be placed before this Court on
14.12.2026.
d) The Registry is directed to forward a copy of this
order to the Director General and Inspector General
of Police for necessary compliance.
e) The Registrar General, High Court of Karnataka, is
hereby directed to take necessary steps to circulate
this order to all the jurisdictional Courts.
25. Accordingly, the following:
ORDER
i) The appeal is allowed-in-part .
ii) The judgment and award in MVC
No.154/2020 by the Senior Civil Judge and
MACT, Shorapur, stands modified.
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iii) The claimant is entitled to the compensation
of Rs.2,30,443/- awarded by the Tribunal,
with interest at the rate of 6% per annum.
iv) The respondent-Corporation shall deposit
50% of the compensation amount, along
with proportionate interest, within eight
weeks from the date of uploading of this
judgment.
v) The order passed by the Tribunal regarding
release and investment of the compensation
amount is maintained.
vi) There shall be no order as to costs.
vii) The matter shall be listed for reporting
compliance on 14.12.2026.
Sd/-
(K V ARAVIND)
JUDGE
MSR
List No.: 1 Sl No.: 11
CT:PK