In a landmark decision, the Supreme Court of India recently ruled that insurance companies are not liable to pay compensation for the death of a driver if the accident was caused due to their own rash and negligent driving. The judgement came in response to a claim filed by the family of a man who died in a self-inflicted road accident in 2014 while driving at high speed.
The case serves as a critical reminder to all motor insurance policyholders: exclusions matter, and not every unfortunate outcome results in a valid insurance claim.
The incident occurred on June 18, 2014, when N.S. Ravisha, a contractor reportedly earning ₹3 lakh per month, was driving his Fiat Linea with family members onboard. While en route from Mallasandra to Arasikere in Karnataka, Ravisha drove at a dangerously high speed and broke traffic rules before losing control near Mylanahalli gate. The car toppled and rolled over, causing his death.
His wife, son, and parents filed a claim of ₹80 lakh with United India Insurance. However, both the Motor Accident Claims Tribunal and the Karnataka High Court dismissed the claim on the grounds that the accident was caused solely by Ravisha’s reckless driving.
The Supreme Court upheld these findings, stating, “When the deceased himself is the tortfeasor (wrongdoer), no compensation can be claimed from the insurer.”
This case underscores a crucial point in motor insurance: it covers accidents, not deliberate or negligent acts. A policyholder cannot expect the insurer to pay compensation if the insured’s own misconduct (like over-speeding or stunt-driving) causes the accident.
Insurance is designed as a risk transfer mechanism, not a reward for irresponsible behaviour. This judgement sends a strong message, particularly to thrill-seekers and speed addicts, that insurance will not protect them from the consequences of their own actions.
Every motor insurance policy comes with a list of exclusions—circumstances under which the insurer is not liable to pay. Common exclusions include:
In Ravisha’s case, it was clearly established that the accident was a result of reckless driving, making it a textbook example of a standard exclusion in most policies.
For anyone holding a motor insurance policy, this ruling is a wake-up call:
The Supreme Court’s verdict should not be seen as a denial of justice but as a reinforcement of responsible behaviour. Insurance is not a safety net for careless actions, it is a financial tool for unforeseen risks.
Drive safe. Drive smart. And don’t assume insurance will cover everything.
Insurance intermediaries play a vital role in educating customers about policy terms and exclusions. At insurancepe, we believe in not just selling insurance but also empowering policyholders with knowledge.
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