News Citation : 2026 LN (HC) 208

March 20, 2026 : The High Court of Chhattisgarh, in a judgment delivered by Justice Radhakishan Agrawal, has partly allowed a set of appeals arising from a fatal road accident in Durg district, clarifying the extent of insurance liability in cases involving statutory violations.

The case stems from a December 11, 2013 accident in which two men, Ajay Kumar Yadav and Shyamlal Yadav, were killed after a goods vehicle allegedly driven at high speed struck them while they were cycling home after work. Justice Agrawal held that the vehicle involved in the accident did not possess a valid fitness certificate at the time of the incident. Under the Motor Vehicles Act, such a vehicle is treated as not validly registered.

The court concluded that this amounted to a fundamental breach of the insurance policy. On this basis, the insurance company cannot be made ultimately liable to bear the compensation. Even after relieving the insurer of final liability, the court directed it to first pay the compensation to the victims’ families. It may later recover the amount from the vehicle’s owner and driver. The court relied on established legal principles aimed at protecting third-party victims and ensuring timely financial relief.

The judgment also addressed appeals filed by the victims’ families seeking higher compensation. Justice Agrawal found that the tribunal had underestimated the income of the deceased. After reassessing the earnings based on minimum wages and correcting the calculation of future prospects to 40%, the court enhanced the compensation amounts. Ajay Kumar Yadav’s family will now receive ₹13.77 lakh, with an additional ₹1.79 lakh awarded over the tribunal’s earlier figure. Shyamlal Yadav’s family will receive ₹10.10 lakh, with an increase of ₹1.96 lakh.

All connected appeals were partly allowed. While compensation was increased, the ultimate financial liability was placed on the vehicle owner and driver, with the insurer required to pay first and recover later.

Case Reference : MAC No. 1608 of 2016 (National Insurance Company Limited vs. Smt. Durga Yadav and Others); MAC No. 1609 of 2016 (National Insurance Company Limited vs. Santosh Yadav and Others); MAC No. 379 of 2017 (Santosh Yadav and Others vs. Nandlal Sahu); MAC No. 380 of 2017 (Smt. Durga Yadav and Others vs. Nandlal Sahu and Others); Counsels: For Appellants (MAC Nos. 1608/2016 & 1609/2016) – Mr. Dashrath Gupta with Mr. Pravesh Sahu, Advocates; For Respondents No. 1 to 6 (in MAC No. 1608/2016) and Respondents No. 1 to 5 (in MAC No. 1609/2016) – Mr. Ashish Pandey, Advocate for Mr. Shokie Yadav, Advocate; For Respondents No. 7 & 8 (in MAC No. 1608/2016) and Respondents No. 6 & 7 (in MAC No. 1609/2016) – None.