SMT. RITA DEVI vs NEW INDIA ASSURANCE CO.LTD.&ANR

The Supreme Court held that the death of Dasarath Singh, a driver of an auto rickshaw, was caused by an accident arising out of the use of the vehicle under Section 163A of the Motor Vehicles Act, 1988. The Court found that the Motor Accidents Claims Tribunal had correctly established the liability of the insurance company to compensate the deceased's family, which was erroneously overturned by the High Court on the grounds that it was a murder case. The Supreme Court reinstated the Tribunal's award of Rs. 2,81,500 with interest, affirming the applicability of the Motor Vehicles Act in this context.