The Supreme Court has held that insurance companies cannot deny compensation to accident victims merely because the vehicle involved had deviated from its permitted route. Emphasising the social purpose of motor vehicle insurance, the Court observed that to deny compensation on such a technical ground would be “offensive to the sense of justice”.

A Bench comprising Justice Sanjay Karol and Justice Prashant Kumar Mishra made these observations while dismissing an appeals filed by vehicle owner K Nagendra and insurer, The New India Insurance Company Limited. The case arose from a fatal accident involving a bus that had strayed from its sanctioned route at the time of the mishap. While the insurer challenged the High Court's direction to pay compensation first and later recover from the ow

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