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Insurance Must Pay Victims First: Supreme Court Upholds ‘Pay and Recover’ in Route Deviation Case

13Jan

By The Legal ChamberNo Comments

Supreme Court

Insurance Must Pay Victims First: Supreme Court Upholds ‘Pay and Recover’ in Route Deviation Case

This Supreme Court judgment affirms the application of the "pay and recover" principle where an insured vehicle deviates from its permitted route. While the insurer remains statutorily liable to compensate accident victims, it is entitled to subsequently recover the paid amount from the policyholder for breaching the contract's geographical terms. Facts Of The Case: On October 7, 2014, the deceased Srinivasa (alias Murthy) died on the spot after his motorcycle was hit by a rashly and negligently driven bus (KA-52-9099). His dependents filed a claim petition before the Motor Accidents Claims Tribunal (MACT) seeking compensation. The Tribunal awarded ₹18,86,000. Dissatisfied, the claimants appealed to the High Court for enhanced compensation, while the insurance company also appealed...

Supreme Court Orders Insurance Payout Despite FIR Delay : Justice for Victim’s Family

The Supreme Court of India overturned the High Court's decision, ruling that the delay in FIR registration and minor discrepancies in eyewitness testimony did not disprove the involvement of the offending vehicle in the accident. The Court upheld the Tribunal's compensation award, emphasizing that the insurer failed to examine the investigating officer to challenge the evidence. The judgment reinforced the principle that technicalities should not override substantive justice in motor accident claims. Facts Of The Case: The case involved a motor accident where the deceased, a school peon, died after his motorcycle collided with a speeding vehicle. His wife and three minor children filed a claim before the Motor Accidents Claims Tribunal (MACT), which awarded them compensation of ₹46,29,15...

Supreme Court : Legal Heirs Can Claim Compensation Even After Victim’s Death

The Supreme Court upheld that legal heirs of a deceased accident victim can pursue compensation for losses incurred during the victim’s lifetime, treating it as part of the victim’s estate. Relying on Oriental Insurance Co. v. Jasmail Singh Kahlon, the Court affirmed that compensation for disability, pain, and future treatment survives the victim’s death. It enhanced the awarded amount, applying a 110% multiplier to income loss and granting additional sums for medical expenses and non-pecuniary damages, ensuring the heirs receive the rightful estate. The judgment reinforces the principle that motor accident claims extend beyond the victim’s lifetime if the cause of action accrued while alive. Facts Of The Case: In 2005, Meena, a 50-year-old woman, suffered 100% disability in a bus accide...