The insurer's duty to compensate third-party claims persists, regardless of license validity issues under the amended Motor Vehicles Act.

IN THE HIGH COURT OF JUDICATURE AT MADRAS Reserved on : 05.02.2026 Pronounced on : 16.03.2026 CORAM THE HONOURABLE MRS.JUSTICE K.GOVINDARAJAN THILAKAVADI C.M.A.No.3671 of 2025 and C.M.P. No.30575 of 2025 The Branch Manager, Royal Sundaram Insurance No.127, 2^nd Floor, 100 Feet Road, Puducherry …Appellant Vs.

1.Pradeep

2.Selvarani … Respondents Prayer: This Civil Miscellaneous Appeal is filed under Section 173 of Motor Vehicles Act ,1988, against the Award dated 19.08.2025 made in M.C.O.P No.366 of 2023 on the file of the Motor Accident Claims Tribunal, Principal Subordinate Judge, Puducherry.

For Appellant : Mr. S. Srinivasan For Respondents : No appearance

JUDGMEN T

This Appeal is directed against the Award dated 19.08.2025 made in M.C.O.P No.366 of 2023 on the file of the Motor Accident Claims Tribunal, Principal Subordinate Judge, Puducherry.

2. Shortly stated, on 03.12.2022 at about 03.00 p.m., when the 1^st respondent / petitioner was riding his Bajaj Discover motorcycle bearing Registration No.PY-01-BZ-0371 from Sedarapet to Villianur, opposite to Kamalambal Marriage Hall, a TVS Star City two wheeler bearing Registration No,PY-01-CH-3115, belongs to the 2^nd respondent herein, ridden by its rider in a rash and negligent manner dashed behind the petitioner’s vehicle, due to which, the petitioner sustained injuries all over his body and was immediately taken to Venkateswara Medical College and Hospital, Ariyur, Puducherry.

3. The 1^st respondent / petitioner filed the above MCOP claiming compensation of Rs.50,00,000/- for the injuries sustained by him in the said accident.

4. The claim was opposed by the Insurance Company by stating that the rider of the offending motorcycle did not possess valid driving license on the date of accident, which is clear violation of the Motor Vehicles Act and policy terms and conditions and that the FIR was filed nearly after 12 days of the said accident. Hence, prayed for dismissal of the claim petition.

5. The Claims Tribunal framed necessary issues and came to the conclusion that the accident took place due to the rash and negligent riding of of the rider of the offending vehicle and awarded a compensation of Rs.2,03,000/-. The Tribunal directed the appellant/Insurance Company to pay the said compensation together with interest at the rate of 7.5% per annum from the date of claim petition till the date of realization, at the first instance, and then recover the same from the owner of the offending vehicle, since there is violation of policy conditions.

6. Aggrieved by this, the Insurance Company is on appeal. According to the learned counsel for the Insurance Company, the Tribunal having concluded that the rider of the insured vehicle did not hold valid driving licence at the time of accident, ought to have exonerated the appellant/Insurance Company, in as much as the subject Insurance Policy was issued after the Motor Vehicles Amendment Act, 1988, which came into force with effect from 01.04.2022. He would further submit that, the compensation granted under the other heads are also without any basis and are exorbitant. Hence, prayed for setting aside the order of the Tribunal passed in the above MCOP.

7. Despite notice, there is no representation on the side of the respondents.

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