In Brief
On 7 October 2014, a motorcyclist died when hit by a bus operating outside its permitted route. His dependents claimed ₹50 lakh compensation. The Tribunal awarded ₹18.86 lakh; the High Court enhanced it to ₹31.84 lakh but applied the 'pay and recover' principle, directing the insurer to first pay and then recover from the owner. The Supreme Court upheld this approach, holding that although route deviation breaches policy conditions, innocent accident victims cannot be denied compensation for faults not their own. The insurer must pay first but may recover from the negligent owner, balancing victim protection with insurer rights under the Motor Vehicles Act.
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