HIGH COURT OF RAJASTHAN (JODHPUR BENCH)
MS. JUSTICE REKHA BORANA, J
SHRIRAM GENERAL INSURANCE CO. LTD. – Appellant
Versus
SMT. HEERO DEVI – Respondent
Order :
1. Learned counsel for the appellant submits that admittedly, the driver of the vehicle in question was possessing a license for a light motor vehicle whereas he was driving a motorcycle. Meaning thereby, he was not authorized to drive the category of vehicle for which he did not possess a valid license.
2. Learned counsel submits that as the proviso attached to sub- section 4 of Section 149 of the Motor Vehicles Act, 1988 (hereinafter referred to as the ‘Act of 1988’) has been omitted and has been replaced by Section 150 vide the Motor Vehicles (Amendment) Act, 2019, the liability of the insurer to pay and its right to recover the amount from the owner has been taken away and the same would now not survive in relation to accidents occurring after 01.04.2022.
3. In support of his submission, learned counsel relied upon the interim order dated 07.03.2024 passed by the Madras High Court in ICICI Lombard General Insurance Co. Ltd Vs. Archana & Ors.; CMP No.5313/2024 in CMA No.534/2024 wherein the Court framed the following question:
“Whether the Tribunal was right in directing the Insurance Company to pay the award amount and giving it liberty to recover it from the Insured, in t
The insurer's liability to indemnify remains unchanged despite amendments to the Motor Vehicles Act, preserving the 'PAY & RECOVER' principle.
The insurer remains liable for compensation despite the rider lacking a valid license as the policy was issued before the relevant amendment to the Motor Vehicles Act.
An insurer remains liable under the 'pay and recovery' principle for policies issued prior to the 2019 amendment, as contractual obligations and liability criteria are determined according to the law....
Insurers remain liable to pay compensation to victims immediately despite legislative amendments, reaffirming the 'PAY AND RECOVER' principle to ensure protection of third-party interests under the M....
Insurers remain liable under the principle of pay and recover even if exonerated unless they prove fundamental breaches contributing to the liability.
Insurers are statutorily obligated to satisfy judgments for third-party claims, even if policy conditions are violated, following amendments to the Motor Vehicles Act.
The insurer's duty to compensate third-party claims persists, regardless of license validity issues under the amended Motor Vehicles Act.
Insurers are liable to pay compensation to third parties despite violations of policy conditions, as the deletion of certain statutory provisions does not negate their obligation.
The liability of the insurance company in cases where the vehicle is being run without a valid permit and in violation of the conditions stipulated in the Insurance Policy.
Section 149(2) deals with insurer's right to defend an action on account of breach of policy condition.
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