Motor Accident Claim | Tractor's Insurer Liable For Death Of Passenger In Trailer Due To Tractor's Negligence : Supreme Court

The Supreme Court today (May 5) ruled that if an insured tractor causes an accident involving an uninsured trailer, the insurer remains liable.

The Court said that if the accident was not due to any independent fault of the trailer but occurred during its movement with the tractor, then the insurer cannot shy away from its liability towards the third-party liability.

Holding thus, the bench of Justices Sudhanshu Dhulia and Ahsanuddin Amanullah dismissed the insurer's appeal against the MACT's order directing it to compensate the claimants for the death of a woman who was travelling on a trailer that overturned due to the rash driving of the insured tractor.

The Appellant-insurer resisted the claim, arguing that the trailer was uninsured, therefore, no third-party liability arises for the uninsured vehicle.

Rejecting the appellant's argument, the judgment written by Justice Ahsanuddin Amanullah held that since the trailer was being pulled by the insured tractor at the time of the incident, the tractor was the primary cause of the accident. The Court clarified that had the trailer been unconnected and the accident occurred solely due to it, the insurer would not have been liable.

“Therefore, the undisputed position is that the trailer was being pulled by/attached to the tractor and then the trailer on which the deceased was present, turned turtle/upturned, resulting in his death. From the above, it is clear that the tractor which was insured was the reason for the accident. It is not the case that only because of some fault on the part of the trailer stand-alone, the accident happened. To explain, we may give an example: that had the trailer been stationary at a place and due to some reason, it overturned or a mishap happened, then without the trailer being specifically insured the Appellant would not be liable to pay, but here the main cause of the accident was the tractor which was pulling/driving/moving the trailer and in such sequence of events, the trailer upturned. Thus, the accident was caused by the tractor, as during the course of being driven/pulled by the tractor, the accident occurred.”, the court observed.

In this regard, the Court approved the Andhra Pradesh High Court's decision in the case of United India Insurance Co. Ltd., Kadapa District v Koduru Bhagyamma, 2007 SCC OnLine AP 830, which held that no separate insurance is required for the trailer when it is attached to the insured tractor, as it becomes a part of the tractor.

Thus, the Court dismissed the appeal and upheld the quantum of compensation awarded or fixation of liability on the insurer-Appellant for the accident.

Case Title: THE ROYAL SUNDARAM ALLIANCE INSURANCE COMPANY LIMITED VERSUS SMT. HONNAMMA & ORS.

Citation : 2025 LiveLaw (SC) 533

Click here to read/download the judgment 

Appearance:

For Petitioner(s) Mr. G. Balaji, AOR Mr. Neeleshwar Pavani, Adv.

For Respondent(s)