Karnataka HC Sets Aside Injury Compensation Award, Remands Case After Tribunal Failed To Notify Insurer’s Standing Counsel

Javad A claimed compensation for injuries sustained in a road accident involving a car owned by Ashraf Ali and insured by Reliance General Insurance Co. Ltd.

The Motor Accident Claims Tribunal awarded him ₹4,89,200 with interest at 6% per annum, holding the insurer liable based on the insurance policy produced. The owner and insurer had been placed ex parte before the Tribunal. The insurer appealed, challenging the compensation and seeking an opportunity to contest the claim; Javad A filed a cross-appeal seeking enhancement.

The appeals were brought under Section 173(1) of the Motor Vehicles Act.

The Court applied the procedural principle that an insurer should be afforded an opportunity to contest a claim before the Tribunal; it stated that, where the insurer in the Taluka is represented by standing counsel, the Tribunal ought to give notice to that counsel before proceeding.

The Tribunal had proceeded ex parte against both the owner and insurer, then assessed compensation and fastened liability on the insurer based on the policy.

Because the Tribunal ought to have notified the insurer’s standing counsel and the insurer had not received an opportunity to contest, the Court concluded that the claim required reconsideration after giving the insurer that opportunity.

The parties were directed to appear before the Tribunal on 23 November 2026; the insurer was to file objections and lead any evidence on that date.

The Tribunal was directed to endeavour to dispose of the claim within six months, and the amount in deposit was to be transmitted to the Tribunal and kept in a fixed deposit for six months with auto-renewal.