Can a Passenger in a Vehicle Claim Under Third-Party Insurance? Supreme Court Refers to Larger Bench

The Supreme Court of India has referred to a larger bench the legal question of whether a passenger travelling in a private vehicle can claim compensation under a third-party insurance policy in motor accident cases. 

A bench comprising Justices Justice Pankaj Mithal and Justice PB Varale observed that there is a conflict in earlier decisions of the Court on this issue.

The Court observed that legal clarity is essential, as it directly affects the rights of accident victims under the Motor Vehicles Act.

The referral aims to resolve whether such passengers are considered “third parties” entitled to insurance coverage in private vehicle accidents.