Additional Premium vs. Policy Breach: Supreme Court Settles Insurance Dispute in Favor of Claimant
The Supreme Court applied the "pay and recover" principle, holding the insurer liable to satisfy the compensation award despite a breach of policy conditions. The insurer was granted the right to subsequently recover the paid amount from the vehicle owner, aligning with established precedent.
Facts Of The Case:
In this case, the appellant, Akula Narayana, was the claimant seeking compensation for a death resulting from a motor accident. The vehicle involved was a five-seater insured with the first respondent, The Oriental Insurance Company Limited, and owned by the second respondent. The Motor Accidents Tribunal held both the insurer and the owner jointly and severally liable, based on evidence that the insurer had collected an additional premium to cover the risk for a driver, conductor...









