In Brief
When a motor vehicle accident victim or their family seeks compensation under the Motor Vehicles Act, the court can order the insurance company to pay the third-party claimants and recover the amount from the vehicle owner, provided the driver lacked a valid driving licence or policy conditions were breached. The High Court wrongly set aside this 'pay and recover' direction based on Article 142 limitations. The Court upheld the Tribunal's order and enhanced the compensation from Rs. 3,55,500 to Rs. 4,94,700, with the insurance company to pay the claimants and recover from the owner under statutory procedures, thereby protecting accident victims while preserving insurers' contractual remedies against insured vehicle owners."
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