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Consumer RightsSupreme Court of India

Manjusha v. United India Assurance Company Limited

Civil Appeal · 2025 INSC 896Decided 25 Jul 2025
CA @SLP (C) No. 5885 of 2019 (Civil Appeal arising out of SLP(C) No. 5885/2019)
Justice Sudhanshu Dhulia · Justice K. Vinod Chandran

Background

The owner of a car was driving it, with his brother (the deceased), their wives and children aboard, when the rear tyre burst, the car went out of control, and the driver died of head injuries. The deceased's widow, children and parents claimed compensation under the Motor Vehicles Act, 1988. The Tribunal awarded them Rs. 25,82,000/-, but the insurer appealed, and the High Court cut the award down to Rs. 2,00,000/-, reading the comprehensive policy's personal-accident add-on as capping the owner-driver's own coverage at that amount.

Decision Breakdown

The Supreme Court noted that neither the insurance policy nor the insurer's written statement had actually been placed on the case record, and that the plea of a Rs. 2,00,000/- limited liability had never been raised before the Tribunal or even in the insurer's memorandum of appeal to the High Court. It surfaced only later. Since there was no negligence by the driver (the accident was caused purely by the tyre burst) and a personal accident cover had admittedly been taken, the Court held there was no basis for the High Court to import a limited-liability defence that was never pleaded or proved. A defence not raised and proved before the trial forum cannot be introduced for the first time in appeal. The Court set aside the High Court's order and restored the Tribunal's full award, with 8% annual interest, to be paid within two months.

Lesson Learnt

An insurance company (or any litigant) must specifically plead and prove a defence like a policy coverage limit at the very first opportunity, before the trial court/tribunal, or it cannot spring that defence later in appeal. For accident victims and their families, this case is a reminder that a full, fair compensation award can be restored if the insurer's technical defence was never properly raised in the first place.

Manjusha v. United India Assurance Company Limited – Legal Case Shots | LegalAware