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Supreme Court of India 2017-02-21 allowed

Manuara Khatun & Ors vs Rajesh Kr. Singh & Ors

Bench: 2 — Abhay Manohar Sapre

In Brief

A woman and another claimant appealed against dismissal of their claim for enhanced compensation after a motor accident killed their spouses in a private vehicle. The insurance company argued it was not liable because the deceased were 'gratuitous passengers'. The Supreme Court allowed the appeals, holding that while the insurance company may not be strictly liable under the policy, it must first pay the awarded compensation to the claimants and then recover the amount from the vehicle owner through execution proceedings. This 'pay and recover' principle ensures innocent victims receive compensation while preserving the insurer's recovery rights."

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Motor Vehicles Act Insurance Law Motor Accident Compensation Third-party Liability Pay and Recover Principle

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