Royal Sundaram v. Honnamma: Supreme Court Clarifies Chain Collision Insurance Liability

Introduction

In Royal Sundaram Alliance Insurance Co. Ltd. v. Honnamma & Ors. (2025), the Supreme Court clarified critical issues related to fault and insurance liability in chain collision accidents.

The Legal Question

When Vehicle A hits Vehicle B, which then hits Vehicle C, who bears liability for the entire chain of accidents?

The Court's Ruling

The Court held that:

• Root Cause Liability: The vehicle which was the root cause of the accident bears liability for the entire chain
• Insurance Coverage: The insurer of the root cause vehicle must compensate all victims
• Causation Principle: Proximate cause analysis determines ultimate liability

Practical Implications

This judgment provides clarity for insurance claims in multi-vehicle accidents, ensuring victims receive compensation without getting entangled in complex inter-insurer disputes.

For Vehicle Owners

Vehicle owners should ensure adequate insurance coverage as liability can extend beyond immediate collision to consequential damages in chain accidents.