Son’s Self-Accident On His Own Insured Bike: Karnataka HC Cuts Parents’ Compensation From ₹5 Lakh To ₹1 Lakh

The deceased, Umashankar R.M., was riding a motorcycle insured with the appellant when it collided with an Omni van on 24 December 2015.

A charge sheet was filed against the deceased, who was the motorcycle’s owner-cum-insured.

His parents claimed compensation under Section 163-A of the Motor Vehicles Act, 1988. The Tribunal awarded them ₹5,00,000 with 6% annual interest. The insurer appealed, contending that the policy terms had not been considered and that the award was unsupported.

Section 163-A of the Motor Vehicles Act, 1988 provides for compensation on a no-fault basis for death or permanent disablement arising from the use of a motor vehicle; claimants need not plead or prove wrongful act, neglect, or default.

The Court described the provision as applying to a special category of road-accident victims whose annual income does not exceed ₹40,000.

It further relied on the terms and conditions of the insurance policy in determining the insurer’s liability where the deceased was the owner-cum-insured, holding that liability in this case was limited to ₹1,00,000.

The Court noted that the deceased was the owner-cum-insured, that the accident involved his motorcycle and another vehicle, and that a charge sheet had been filed against him.

Although Section 163-A dispenses with proof of negligence, the Court considered the policy terms applicable to the insurer’s liability for the deceased owner-cum-insured. It therefore found the Tribunal’s ₹5,00,000 award could not stand against this insurer and limited recovery from it to ₹1,00,000. The claimants remained free to seek compensation from the other vehicle involved in the accident.

They were granted liberty to pursue compensation against the other vehicle; the parties were directed to appear before the Tribunal on 23 November 2026.