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Supreme Court of India 2018-08-08 partly_allowed

Shamanna and Another vs Divisional Manager The Oriental Insurance Co. Ltd. and Ors

Bench: 2 — R. Banumathi

In Brief

A man died when the door of a negligently driven jeep opened and threw him out. The Tribunal awarded his parents Rs. 3,55,500 and directed the insurance company to pay but recover from the vehicle owner. The High Court removed the "pay and recover" direction, directing the parents to recover directly from the owner, but enhanced compensation to Rs. 4,94,700. The Supreme Court held the Tribunal's "pay and recover" order was correct under established precedent, as the driver lacked a valid license (a policy breach). The Court set aside the High Court's direction exonerating the insurer, restored the "pay and recover" award, and affirmed the enhanced compensation.

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Motor Vehicles Act Third-party Risk Insurance Compensation Pay and Recover Policy Breach Invalid Driving Licence

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