Supreme Court Refers Scope of No-Fault Motor Accident Claims Under Section 163A to Larger Bench

The Supreme Court has referred to a larger bench the issue of whether compensation under Section 163A of the Motor Vehicles Act, 1988, meant for no-fault liability can extend to drivers or their legal heirs in single-vehicle accidents.

A bench of Justices S Dhulia and K Vinod Chandran flagged inconsistencies with the 2004 ruling in Deepal Girishbhai Soni, which held that such claims can't succeed if Section 166 fails.

The Court stressed the need for clarity, noting that a broader reading of Section 163A could expand compensation access and reshape insurance liability frameworks.

[Wakia Afrin (Minor) v. M/s National Insurance Co. Ltd.]