In Brief
A passenger died in a motor accident involving an insured vehicle. While the Motor Accidents Tribunal held both the vehicle owner and insurer liable for compensation, the High Court absolved the insurer entirely, citing policy breach (vehicle overloading) and limited coverage. The Supreme Court allowed the claimant's appeal, ruling that insurers cannot escape statutory liability to third parties entirely, even when policy conditions are breached. Instead, the insurer must pay the compensation award but may recover the amount from the vehicle owner—the 'pay and recover' principle—ensuring claimant protection while preserving insurer recovery rights.
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