Insurer Not Limited to Section 149 Defences When Made a Party, Rules Supreme Court

The Supreme Court held that an insurance company, when impleaded as a party in a motor accident claim, can contest the case on all available grounds, including the quantum of compensation.

It clarified that such a right is not limited to the defences under Section 149(2) of the Motor Vehicles Act, which apply when the insurer is only a noticee.

The Court set aside a Bombay High Court decision that had restricted the insurer’s arguments and remitted the matter back for fresh consideration on compensation, directing the High Court to decide the issue expeditiously.

[National Insurance Company Ltd. v. Gauri Gurudas Gaonkar & Ors.]