“Pay and Recover” Doctrine Upheld: Supreme Court Directs Insurance to Compensate, Then Claim from Owner
The Supreme Court applied the "pay and recover" principle, directing the Insurance Company to satisfy the compensation award despite a policy breach due to an invalid driving licence. The insurer was absolved from liability but was ordered to pay the claimant and was permitted to subsequently recover the amount from the insured vehicle owner.
Facts Of The Case:
The case originated from a fatal vehicular accident on 13th October 2011, in which Nand Kumar, a conductor, died. The accident involved a truck driven by respondent No. 1. The deceased's mother, Rama Bai, filed a claim petition before the Motor Accident Claims Tribunal. The Tribunal awarded a compensation of Rs. 3 Lakhs, payable by the driver and the truck owner (respondent Nos. 1 & 2), after finding that the driver did not po...