Supreme Court on Insurance: Supreme Court’s sensational verdict on accident insurance policy!
In a landmark judgment, the Supreme Court of India has ruled that insurance companies are not liable to pay compensation in accident claims if the death of the insured is due to negligent or rash driving.

In a landmark judgment, the Supreme Court of India has ruled that insurance companies are not liable to pay compensation in accident claims if the death of the insured is due to negligent or rash driving. The verdict comes in a case involving a fatal accident that occurred in Karnataka in 2014.
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Background: Fatal Crash Due to Rash Driving
The case pertains to Ravish, a resident of Karnataka, who died on June 18, 2014, after driving his car at high speed and in a negligent manner. Following his death, his family approached the Karnataka High Court seeking an insurance claim of ₹80 lakh under the personal accident policy.
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However, the police charge sheet concluded that the accident was caused due to Ravish’s rash and negligent driving. The family, on the other hand, claimed that the accident occurred due to a tyre burst. The court dismissed their argument citing clear evidence of traffic violations and negligence.
High Court Ruling: Insurance Claim Not Valid
The Karnataka High Court had earlier ruled that if a person violates traffic laws and dies due to their own negligence, the insurance claim cannot be granted. The court also noted that it is the responsibility of the family to prove that the deceased falls within the valid coverage of the insurance policy.
Supreme Court Verdict: No Liability on Insurers
Challenging the High Court’s verdict, the family approached the Supreme Court, but the bench comprising Justice P.S. Narasimha and Justice R. Mahadevan upheld the earlier decision.
The bench observed that the deceased was solely responsible for the accident and stated:
“If the insured dies due to their own fault—namely, reckless and negligent driving—the insurance company is not liable to pay any compensation.”
This verdict sets a significant legal precedent for how insurance claims involving road accidents will be assessed moving forward.
Key Takeaway for Policyholders
This ruling serves as a crucial reminder for policyholders and their families:
- Adherence to traffic rules is essential not only for safety but also for ensuring the validity of insurance claims.
- Negligence, rash driving, or violation of road safety norms may lead to forfeiture of insurance benefits.