The amended Second Schedule’s ₹5 lakh death compensation applies to pending Section 163A appeals.

The claimants’ five-and-a-half-year-old daughter died after a truck struck the motorcycle on which she was riding as a pillion passenger.

They brought a claim under Section 163A of the Motor Vehicles Act, 1988. The Tribunal awarded ₹3,49,500 with interest at 10% per annum against the truck’s registered owner-driver, but exonerated the insurer on the ground that the driver did not hold a valid licence.

The claimants appealed, seeking the minimum compensation under the Second Schedule as amended in 2018 and payment by the insurer.

Whether the amended Second Schedule, prescribing ₹5,00,000 for death, applied to this pending appeal concerning an accident that occurred before the amendment.

Whether the insurer could be directed to satisfy the award despite the alleged invalidity of the driver’s licence, subject to recovery rights.

Whether the compensation and interest awarded by the Tribunal should be enhanced or varied.

Section 163A of the Motor Vehicles Act provides for compensation on a structured basis without requiring proof of fault; the amended Second Schedule, brought into force by the 22 May 2018 notification under Section 163A(3), prescribes ₹5,00,000 for death.

In Urmila Halder v. New India Assurance Co. Ltd., 2018 SCC OnLine Cal 11751, the Calcutta High Court held that the substituted Schedule applies to pending claims and appeals decided after the notification, while excluding awards that have attained finality; the Supreme Court affirmed that approach in The New India Assurance Co. Ltd. v. Urmila Halder, 2024 SCC OnLine SC 4983.

Under Reliance General Insurance Co. Ltd. v. Om Prakash, 2026 SCC OnLine SC 1445, the pay-and-recover principle may apply where the insurer is not ultimately liable, allowing the insurer to satisfy the claim while pursuing recovery in accordance with law.

The appeal remained pending after the amended Schedule came into force. Applying Urmila Halder and its affirmance by the Supreme Court, the Court held that the current Schedule governed the determination and that the claimants were entitled to ₹5,00,000, notwithstanding the accident’s earlier date.

Given the alleged licence breach, the Court applied the pay-and-recover principle: the insurer was directed to deposit the compensation, while retaining liberty to take recovery steps in accordance with law.

The Court fixed interest at 6% per annum from the date the claim application was filed.

The insurer was directed to deposit the amount with the Registrar General within six weeks of communication of the order; the Registrar General was directed to disburse it equally between the claimants.

The insurer was granted liberty to pursue recovery in accordance with law.