IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 11-03-2026 CORAM THE HON'BLE MRS.JUSTICE R. KALAIMATHI and CMP No.5882 of 2026 United India Insurance Company Limited Silingi Building, 4th Floor, No. 134, Greams Road, Chennai 06. ..Appellant(s)

Vs

1. K. Dhatchayani 2. M. Jafer Sadiq

3. V. Geetha ..Respondent(s)

Prayer: Civil Miscellaneous Appeal filed under Section 173 of M.V.Act, 1988, against the award and decree dated 13.08.2025 made in MCOP.No.3473 of 2023 on the file of The Motor Accidents Claims Tribunal, Special I Judge, Small Causes Court, Chennai.

For Appellant(s): Mr.Arunkumar.S For Respondent(s): Mr.R.Dinesh Kumar - R1 JUDGMENT The Civil Miscellaneous Appeal has been preferred by the Insurance Company against the award dated 13.08.2025 made in MCOP.No.3473 of 2023 on the file of the Motor Accidents Claims Tribunal, Special I Judge, Small Causes Court, Chennai, on the liability issue.

2.The parties are indicated herein as per their litigative status before the Tribunal.

3.Learned counsel for the appellant would submit that the 1^st respondent drove his motor cycle without valid driving licence at the relevant point of time and thereby violated the policy conditions. He would further contend that in such circumstances, as the owner of the vehicle, has violated the policy condition, and the Insurance Company is not liable to pay compensation to the claimant herein.

4.The claim petition was filed under Section 166 of Motor Vehicles Act, 1988, claiming compensation of Rs.10 lakhs for the injuries sustained by the claimant during the road traffic accident that occurred on 07.06.2023.

5.The Tribunal, upon consideration of oral and documentary evidence, and after hearing the arguments advanced by either side, directed the Insurer to pay the compensation at the first instance and to recover the same from the 1^st and 2^nd respondents therein. This order of pay and recover passed by the Tribunal is put to challenge in this appeal.

6.The copy of the Insurance Policy has been marked as Ex.R5. The period of the policy is 24.10.2018 to 23.10.2023. The policy was issued before the date of amendment viz. 04.02.2022. The date of issuance of policy is the crucial aspect. As per Section 147 (4) of the M.V. Act, the Insurance policies issued before the commencement of the Motor Vehicles (Amendment) Act, 2019, shall continue to be governed by the provisions of the unamended Act, irrespective of subsequent amendments.

7.In such circumstances, it is relevant to refer to the observations made by the Hon’ble Supreme Court in the case of National Insurance Company Limited V. Swaran Singh and others reported in [(2004) 3 SCC 297], wherein, it has been held that the Insurance Company has to satisfy the decree at the first instance and later recover the awarded amount from the owner or driver of the vehicle. In light of the judgment cited supra, the United India Insurance Company Ltd. / Insurer of the motor cycle is liable to pay the compensation at the first instance and recover the same at a later point of time from the 1^st and 2^nd respondents / owners of the motor cycle.

8.Based on the aforesaid details, Section 147(4) of the Act of 2019 has to be referred to. Section 147(4) is extracted hereunder;

“110. The summary of our findings …..

(i) Chapter XI of the Motor Vehicles Act, 1988 providing compulsory insurance of vehicles against third-party risks is a social welfare legislation to extend relief by compensation to victims of accidents caused by use of motor vehicles. The provisions of compulsory insurance coverage of all vehicles are with this paramount object and the provisions of the Act have to be so interpreted as to effectuate the said object;

(ii) An insurer is entitled to raise a defence in a claim petition filed under Section 163-A or Section 166 of the Motor Vehicles Act, 1988, inter alia, in terms of Section 149(2)(a)(ii) of the said Act;

(iii) The breach of policy condition e.g. disqualification of the driver or invalid driving licence of the dri