Insurers remain liable to pay awards for third-party claims regardless of changes to policy provisions following amendments to the Motor Vehicles Act.

JUDGMENT

The Civil Miscellaneous Appeal has been preferred by the Insurance Company against the award dated 29.04.2024 passed in M.C.O.P.No.193 of 2023 by the Special Sub Judge / Motor Accident Claims Tribunal, Tiruchirappalli.

2. The facts of the case are as follows :-

On 21.03.2023 at about 09.15 a.m., when the first respondent was riding his two wheeler bearing Registration No.TN-81-D-1401 opposite to Boologanathar Swamy Kovil, E.B. Road, Trichy from North to South direction on the extreme left side of the road, another two wheeler bearing Registration No.TN-05-BF-5126 belonging to the respondents 2 and 3, came in the opposite direction in a rash and negligent manner, and dashed against the first respondent's vehicle and as a result, the first respondent sustained grievous injuries all over his body. The first respondent was immediately taken to KMC hospital, Trichy. Then the claim petition was filed by the first respondent seeking compensation of Rs.10,00,000/-. 3. The respondents 2 and 3, owner of the vehicle, remained ex-parte before the Tribunal and the claim petition was opposed by the appellants.

4. The learned trial Judge, after considering the evidence, both oral and documentary, passed the impugned award dated 29.04.2024, holding that the rider of the two wheeler bearing Registration No.TN-05-BF-5126 was responsible for the accident and directed the appellants to pay the award amount of Rs.2,49,058/- with interest at 9% per annum to the first respondent and then to recover the same from the respondents 2 and 3. Aggrieved by the said award, the appellants have come forward with the present appeal.

5. It is pertinent to note that the appellant has not challenged the finding of the Tribunal and that they have also not challenged the quantum of compensation awarded by the Tribunal.

6. The learned counsel appearing for the appellants would submit that since the terms and conditions of the Policy was violated by allowing the person to drive the two wheeler without valid driving license, the appellants cannot be even fastened with the liability to pay and recover. That after the amendment to the Motor Vehicles Act by the Central Act 32 of 2019 and after deletion of proviso to Section 149(4) of the Motor Vehicles Act, the Tribunal cannot order pay and recovery and that the Tribunal, without any basis, has awarded compensation with interest at 9%

per annum.

7. It is not in dispute that the respondents 2 and 3 are the owner of the offending vehicle and the same was insured with the appellants and that the insurance policy was in force on the date of accident. It is also not in dispute that the rider of the offending vehicle was not possessing valid driving licence at the time of accident. 8. The points for consideration are:-

(i) Whether the Tribunal empowered to order pay and recovery against insurer 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?

(ii) Whether the Tribunal erred in mulcting liability and adopting the doctrine of pay and recovery, in spite of producing the evidence to show that the two wheeler rider had no valid driving license to drive the two wheeler at that time?

(iii) Whether the Tribunal erred in awarding compensation with interest at the rate of 9% per annum?

9. The issue raised in this appeal with regard to pay and recovery has already been considered in a batch of cases by a Learned Judge of this Court in C.M.A.No.554 of 2025 and batch reporte