Sikkim High Court Awards ₹5 Lakh No-Fault Compensation After Brake-Failure Death

No-fault claim survives failure to prove negligence

In Rekha Chhetri v. Tata AIG General Insurance Company, the Sikkim High Court held that a Motor Accident Claims Tribunal could grant no-fault compensation under Section 140 of the Motor Vehicles Act, 1988 even after rejecting a Section 166 claim for want of rash or negligent driving.

The deceased died when the vehicle met with an accident attributed to brake failure. His legal heirs’ fault-based claim was dismissed, but Section 140(4) prevented the no-fault claim from being defeated merely by alleging wrongful conduct of the person whose death formed the basis of the application.

Insurer directed to pay

Because the vehicle carried a package policy, the insurer was required to indemnify the owner. Considering the delayed adjudication of a 2019 death, the High Court awarded ₹5 lakh with 7% interest from February 14, 2023. The Court also urged insurers to place complete policy terms before tribunals instead of leaving claimants to reconstruct coverage.