2026 INSC 575 | Decided: May 26, 2026
In a significant pronouncement that reinforces the constitutional imperative of just and equitable compensation under the Motor Vehicles Act, 1988 (the Act), the Supreme Court of India in Sarla Devi & Ors. v. Reliance General Insurance Company Limited & Ors. (2026 INSC 575) has clarified the precise contours of deductibility of ex-gratia financial assistance from motor accident compensation. The three-Judge Bench, speaking through Justice Vijay Bishnoi, held that while the principle against double recovery is well-established, it cannot be mechanically applied so as to extinguish the independent compensatory entitlement of a dependent who is ineligible to receive the benefit being set off.
