Impleading insurer in certain cases
Section 170 of the Motor Vehicles Act, 1988 deals with impleading insurer in certain cases. Where in the course of any inquiry, the Claims Tribunal is satisfied that-- (a) there is collusion between the person making the claim and the person against whom the claim is made, or (b) the person against whom the claim is made has failed to contest the claim, it may, for reasons to be recorded i The Act came into force on 01 Jul 1989.
Where in the course of any inquiry, the Claims Tribunal is satisfied that--
(a) there is collusion between the person making the claim and the person against whom the claim is made, or
(b) the person against whom the claim is made has failed to contest the claim,
it may, for reasons to be recorded in writing, direct that the insurer who may be liable in respect of such claim, shall be impleaded as a party to the proceeding and the insurer so impleaded shall thereupon have, without prejudice to the provisions contained in sub-section (2) of 1[section 150], the right to contest the claim on all or any of the grounds that are available to the person against whom the claim has been made.
Section 170, The Motor Vehicles Act, 1988 (Act 59 of 1988).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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National Insurance Company Limited vs Meghji Naran Soratiya
Court's Decision & Legal Precedent
Where a tribunal grants permission to an insurer to contest a motor accident claim under Section 170 Motor Vehicles Act 1988 based on the driver and owner's failure to contest, and the insurer specifically alleges in its application that driver/owner have failed to contest, the failure of the tribunal to record written reasons for granting permission does not render the order invalid, illegal, or non-existent. The order can be verified from the record itself, and procedural requirements should not be stretched to absurd levels to defeat the ends of justice. Additionally, in assessing motor accident compensation: (1) Income should be realistic and close to actual earning; (2) Deduction for personal living expenses should typically be 50% for adults or one-fourth to one-third for young persons with larger families depending on circumstances; (3) Multiplier should be determined using established principles based on age and life expectancy; (4) Interest rate of 9% per annum is appropriate for motor accident compensation, not 15% per annum.
On this section: Tribunal's obligation to implead insurer as party to contest claim when satisfied of: (a) collusion between claimants and driver/owner, or (b) failure of driver/owner to contest claim; Tribunal must record reasons in writing; insurer has right to contest claim on all grounds available to driver/owner
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Josphine James vs United India Insurance Co. Ltd.
Court's Decision & Legal Precedent
In motor accident claims under the Motor Vehicles Act, 1988, an Insurance Company cannot file an appeal challenging the quantum of compensation awarded by the Motor Accidents Claims Tribunal unless it has previously obtained permission from the Tribunal under Section 170(b) to contest the case on merits. The words 'failed to contest' in Section 170(b) include 'failed to file appeal' - thus, if the insured (vehicle owner) does not file an appeal, the Insurance Company cannot challenge the quantum of compensation in appellate proceedings. The Insurance Company's rights are limited to those specified in Section 149(2), which permits it to contest only whether the claimant is entitled to compensation and whether the amount is reasonable, but not to challenge the quantum itself through appeal without prior Tribunal permission.
On this section: Requires Insurance Company to obtain permission from Tribunal before contesting case on merits; Court interpreted 'failed to contest' to include 'failed to file appeal' - if insured does not file appeal, Insurance Company cannot challenge quantum of compensation
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Vs. Vanita w/o. Ganesh Gadakh (First Appeal No.2969 of 2013) and New India Assurance Co. Ltd.Vs. Laxman s/o. Dadarao Karpe & Ors. (First Appeal No.2973 of 2013). In the case of United India Insurance Co. Ltd. Vs. Shila Datta & Ors., AIR 2012 SC 86 , the Hon'ble Apex Court has considered sections 168 and 170 of the Motor Vehicles Act [for short "MV Act"]. It is held that the insurance company is entitled to contest the ( 11 ) fa309.21 matter by raising grounds without restricting grounds available under section 149(2) of the MV Act. Learned Advocate Mr. Deshmukh thus submits that though the owner has accepted the …
Questions about Section 170
What have the courts held on Section 170 of the Motor Vehicles Act?
National Insurance Company Limited vs Meghji Naran Soratiya (26 Feb 2009) is the leading judgment on this section among those set out below: Tribunal's obligation to implead insurer as party to contest claim when satisfied of: (a) collusion between claimants and driver/owner, or (b) failure of driver/owner to contest claim; Tribunal must record reasons in writing; insurer has right to contest claim on all grounds available to driver/owner. Another 1 judgment on this section is set out below, all of them from the Supreme Court. They run from 2009 to 2013.
How do I find court cases under Section 170 of the Motor Vehicles Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: MV Act 170, section 170 MV Act, section 170 of the Motor Vehicles Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with National Insurance Company Limited vs Meghji Naran Soratiya (26 Feb 2009).
What should I read with Section 170 of the Motor Vehicles Act, and has it changed?
Its own text turns on section 150 (Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks), so none of them can safely be read on its own.
When did Section 170 of the Motor Vehicles Act come into force?
Section 170 of the Motor Vehicles Act, cited as MV Act 170, came into force on 01 Jul 1989, having been enacted on 14 Oct 1988. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1948 words
- 88. Validation of permits for use outside region in which granted1560 words
- 51. Special provisions regarding motor vehicle subject to hire-purchase agreement, etc1199 words
- 150. Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks1102 words
- 96. Power of State Government to make rules for the purposes of this Chapter995 words
- 72. Grant of stage carriage permits868 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.