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Insurance Company can't avoid Payment of Compensation even in case of violation of its Policy, Read HC Order

 Compliance Issues that Your Insurance Company Should Know

The Telangana High Court in one of its recent rulings has held that the insurer is still liable to pay the compensation even if insurance policy conditions are violated.

The single-judge Bench of Justice G. Sri Devi placed heavy reliance on principle of "pay and recover" as laid down in the SC Ruling in Manuara Khatun & Ors. Vs. Rajesh Kr. Singh & Ors., 2017 Latest Caselaw 156 SC and added that insurer may recov
er the same from the owner of the offending vehicle later but first it has to pay to the claimant.

Brief Facts of the Case

The claimant has assailed the MAT order wherein the insurance company's liabilty to pay his compensation has been ruled out. He has filed for compensation under Section 166 of the Motor Vehicles Act of Rs. 1,50,000/- for the injuries sustained by him in a motor vehicle accident has been rejected.

The claimant was travelling in Innova Car along with others and the driver of the said vehicle drove in a rash and negligent manner with high speed and dashed to a bus-stand building. As a consequence, the inmates of the car sustained grievous injuries. 

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(With input from news agency language)

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