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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice S. SOUNTHAR
Branch Manager, M/s. SBI General Insurance Company Limited – Appellant
Versus
Muthulakshmi – Respondent
JUDGMENT :
1. The common question of law arising for consideration in all these Civil Miscellaneous Appeals is, Whether Motor Accident Claims Tribunals are empowered to order pay and recovery against insurers in case of violation of policy conditions after deletion of proviso to old Section 149 (4) and 149 (5) [now renumbered as Section 150 ] of MOTOR VEHICLES ACT , 1988, by Motor Vehicles Amendment Act (Central Act 32 of 2019), with effect from 01.04.2022?
2. These appeals are either filed challenging the order passed by the Motor Accident Claims Tribunals ordering pay and recovery against the Insurance Companies in view of violation of policy conditions notwithstanding the above said amendment or exoneration of Insurance Companies by the Tribunals on the ground that proviso to old Section 149 (4) was deleted by the Amending Act in New Section 150 (4).
3. Heard the arguments of Mr.J.Michael Visuvasam, learned counsel appearing for the Appellant/Insurance Company in C.M.A.No.554 of 2025, Mr.U.Chithambaram, learned counsel appearing for the appellant/claimant in C.M.A.No.569 of 2025, M/s.Surekha N.B., learned counsel appearing for the Appellant/Insurance Company in C.M.A.No.309 of 2025
Insurers are statutorily obligated to satisfy judgments for third-party claims, even if policy conditions are violated, following amendments to the Motor Vehicles Act.
Insurers remain liable under the principle of pay and recover even if exonerated unless they prove fundamental breaches contributing to the liability.
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.
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 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 insurer remains liable to compensate for third-party claims even if policy conditions are violated, ensuring prompt justice for injured parties as per statutory obligations.
An insurer must pay compensation to third parties despite breaches by an insured, unless willful negligence is established.
Insurance companies are not liable to indemnify claims for gratuitous passengers in goods vehicles under the Motor Vehicles Act, 1988, as their risks are not covered by statutory insurance policies.
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