Mr. Dhanraj filed a personal injury claim under a third-party motor insurance policy after being involved in a serious motorbike accident. The insurance company initially refused, stating his eventual death as a barrier to continuing the proceedings. While the case was still pending, Dhanraj, who had been pronounced completely disabled, died on April 24, 2024.
High Court award and insurance appeal
Dhanraj had been awarded Rs 18 lakh with 9% interest by the Motor Accident Claims Tribunal (MACT). The High Court later increased the amount to Rs 20 lakh. Despite this, the insurance company approached the Supreme Court, arguing that claims for personal injury could not continue after the death of the insured, referencing Section 306 of the Indian Succession Act, 1925, Reuters reported. Advocate Shail Kumar Dwivedi represented Dhanraj’s legal heirs in the matter.
Supreme Court affirms heirs’ right to compensation
A bench consisting of Justices K. Vinod Chandran and N. V. Anjaria gave the ruling in favour of Dhanraj's legitimate heirs on September 26, 2025. The Court noted that Act 32 of 2019 amendments to Section 167 of the Motor Vehicles Act, 1988, make it clear that legal representatives hold the right to compensation even if the deceased dies during the proceedings, regardless of whether the death was caused by the accident. According to the Supreme Court, "The right to claim compensation for injuries caused in a motor vehicle accident survives on the legal representatives of the injured, even if the injured dies in the course of proceedings."
The Jasmail Singh Kahlon and Meena ruling, which preserved the right of legal heirs to seek damages for estate loss connected with the accident, was also cited in the ruling. The Court maintained the entire award of Rs 20,30,095 plus 9% interest from the time the claim petition was filed until it was paid in full. The remaining sum must be paid within three months after any money that has already been paid is deducted.
