The Tribunal must determine whether insurance coverage began after the accident before fixing the insurer’s liability.

The claimant sustained injuries in an accident involving a pick-up vehicle on 19 October 2019 and sought compensation under Section 166 of the Motor Vehicles Act, 1988.

The Motor Accident Claims Tribunal awarded her ₹5,07,154 against the driver-owner and insurer.

On appeal under Section 173, the insurer argued that the accident occurred at 7:00 a.m., whereas the policy was issued at 4:00 p.m. that day, and therefore coverage had not commenced at the time of the accident.

The claimant opposed remand, relying on the insurer’s failure to lead evidence despite opportunity, and had filed a cross-objection seeking enhancement.

Whether the insurer should be given a further opportunity to adduce evidence on whether insurance coverage had commenced when the accident occurred.

Whether the award should be set aside and the matter remitted for the Tribunal to determine insurance liability and, if required, compensation.

Section 173 of the Motor Vehicles Act, 1988, provides for an appeal against an award of a Claims Tribunal.

The insurer referred to Section 64VB of the Insurance Act, 1938, in its written statement, and relied on MAC No. 213 of 2022 in support of its contention that no insurance contract existed at the time of the accident; the High Court did not decide the appeal by applying either as a conclusive rule on the facts.

The alleged difference between the accident time and the policy issue time raised a material factual question about when coverage began.

Because the insurer’s evidence had been closed after its witness failed to attend, the Court considered that an opportunity should be given to substantiate the defence.

It therefore remitted the matter for the Tribunal to determine coverage on the evidence, while permitting the parties to amend pleadings, file documents, and lead evidence.

The matter was remitted to the Claims Tribunal to determine whether the vehicle was insured at the time of the accident and to decide the case afresh in accordance with law, including liability and any enhancement of compensation.

The Tribunal was directed to issue notice to the driver-owner, who had not appeared before the High Court.

The insurer’s deposited amount was not to be recovered from the claimant and would be dealt with in the fresh award.

The parties were directed to appear before the Tribunal on 9 December 2026.