Chhattisgarh High Court

Insurer of tractor liable for compensation even if attached uninsured trolley is the immediate cause of accident.

SHRIRAM GENERAL INSURANCE COMPANY LIMITED vs KUWARIYA BAI

Chhattisgarh High CourtJUDGMENT: April 25, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The deceased died after falling under the wheels of a trolley attached to a tractor

Source reference: p. 3-4

The claimants filed a claim under the Motor Vehicles Act, 1988. The Additional Motor Accidents Claims Tribunal (MACT), Bhatapara, awarded ₹8,57,500/- in compensation, fastening the liability on the appellant Insurance Company

Source reference: p. 3

The Insurance Company appealed this decision on the grounds that while the tractor was insured by them, the attached trolley was uninsured; therefore, they claimed they were not liable for the accident

Source reference: p. 3-4
02

Issues

1. Whether the insurer of a tractor is liable to pay compensation for an accident involving an attached, uninsured trolley if the tractor is the "root cause" of the accident.

Source reference: p. 4, para 5
03

Law Applied

Section 173 of the Motor Vehicles Act, 1988

Source reference: p. 3, para 1

The Royal Sundaram Alliance Insurance Company Limited v. Smt. Honnamma Ors. (2025 INSC 625), which dictates that when a tractor-trolley unit is in motion, the tractor is the primary engine and "root cause" of any accident

Source reference: p. 4-5, para 5

The MV Act is "beneficial and welfare-oriented legislation," and technicalities regarding the separate registration/insurance of a trailer should not overshadow the reality that the insured tractor was the moving force behind the mishap

Source reference: p. 5
04

Reasoning

The Court analyzed the appellant's contention that the lack of insurance for the trolley absolved them of liability. However, applying the Honnamma principle, the Court reasoned that the accident occurred while the trailer was being "pulled by/driven by/attached to" the insured tractor

Source reference: p. 4

The Court found that the tractor was the "root cause" of the event; the accident was a chain of events triggered by the insured vehicle that cannot be "compartmentalized"

Source reference: p. 5

Following the Supreme Court’s directive to prioritize "practicality over technicality" in beneficial legislation, the Court determined that since the tractor was insured, the liability extends to the death caused through the attached trailer

Source reference: p. 5, para 6
05

Holding

The High Court dismissed the appeal and upheld the impugned award dated 11/04/2019. The Court held that the Claims Tribunal correctly fastened the liability on the appellant Insurance Company as the insured tractor was the functional cause of the accident

The parties were ordered to bear their own costs

Source reference: p. 6, para 7
Chhattisgarh High Court

Original Court PDF

SHRIRAM GENERAL INSURANCE COMPANY LIMITEDvsKUWARIYA BAI

Chhattisgarh High Court · April 25, 2026

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