In the context of motor accidents the expressions "caused by" and "arising out of" are often used in statutes. Although both these expressions imply a causal relationship between the accident resulting in injury and the use of the motor vehicle but they differ in the degree of proximity of such relationship. This distinction has been lucidly brought out in the decision of the High Court of Australia in Government Insurance Office of N.S.W. v. R.J. Green case [(1965) 114 CLR 437], wherein Lord Barwick, C.J. has stated : (CLR p. 433)
Bearing in mind the general purpose of the Act I think the expression 'arising out of must be taken to require a less proximate relationship of the injury to the relevant use of the vehicle than is required to satisfy the words 'caused by'. It may be that an association of the injury with the use of the vehicle while it cannot be said that that use was causally related to the injury may yet be enough to satisfy the expression 'arise out of' as used in the Act and in the policy. {Para 34}
35. In the same case, Windeyer, J. has observed as under : (CLR p. 447)
The words 'injury caused by or arising out of the use of the vehicle' postulate a causal relationship between the use of the vehicle and the injury. 'Caused by' connotes a 'direct'or 'proximate' relationship of cause and effect. 'Arising out of extends this to a result that is less immediate; but it still carries a sense of consequence.
13. In view of the stated liberal interpretation of this term, will the presence of the Respondent in the auto rickshaw suffice as 'use'. In ordinary circumstances, it probably would have. But take for instance a scenario where the Respondent was a pedestrian and stood near or under the tree in an attempt to take shelter from the heavy rain and now the branch falls on him. This is an entirely likely scenario. In other words, the motor vehicle itself does not play an active role in the accident. It is not part of the proximate cause of the accident. For that reason, a claim Under Section 166 specifically may not be appropriate.
IN THE SUPREME COURT OF INDIA
Civil Appeal No. 8455 of 2026
Decided On: 11.06.2026
The Commissioner, Bruhat Bangalore Vs. K.K. Umesh Kumar and Ors.
Hon'ble Judges/Coram:
Sanjay Karol and N. Kotiswar Singh, JJ.
Author: Sanjay Karol, J.
Citation:2026 INSC 637, MANU/SC/0627/2026
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