Case Note & Summary
The present appeal was filed by the United India Insurance Company Limited under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 30.09.2021 passed by the Motor Accident Claims Tribunal (Auxi.), Mahesana, in Motor Accident Claim Petition No.282 of 2015. The original claimants, legal heirs of the deceased Mehulbhai, had filed a claim petition seeking compensation for the death of the deceased in a road accident that occurred on 01.07.2015. The deceased was traveling in a mini truck (Chhota Hathi) bearing registration No.GJ-02-Z-2965 to deliver goods. When the mini truck reached near the accident spot, the driver of a Turbo Truck bearing registration No.GJ-24-V-4336, who was ahead, applied sudden brakes in a rash and negligent manner, causing the left portion of the mini truck to dash with the Turbo Truck. The deceased sustained injuries and was taken to Unjha Cottage Hospital, where he succumbed to the injuries. An FIR being I-C.R. No.122/2015 was registered with Unjha Police Station against the driver of the Turbo Truck. The Tribunal awarded compensation to the claimants. The appellant Insurance Company, being the insurer of the Turbo Truck, challenged the award primarily on the ground of breach of policy conditions, alleging that the driver of the Turbo Truck did not possess a valid driving license. The court heard learned Advocate Mr. R. P. Raval for the appellant and learned Advocate Ms. K. S. Pathak for the respondent no.9 Insurance Company. The court observed that the appellant did not challenge the quantum of compensation but only the liability. Relying on the settled principle of 'pay and recover' in third party claims, the court held that the insurer is liable to pay compensation to the claimants and then recover the same from the insured if there is a breach of policy conditions. The court found no error in the Tribunal's award and dismissed the appeal. The judgment was delivered on 18.02.2026 by Justice Hasmukh D. Suthar.
Headnote
A) Motor Accident Claims - Breach of Policy Conditions - Pay and Recover - Section 173 of Motor Vehicles Act, 1988 - The appeal challenged the Tribunal's award on the ground of breach of policy conditions as the driver of the offending vehicle did not possess a valid driving license. The court held that in third party claims, the insurer is liable to pay compensation and then recover from the insured, following the principle of 'pay and recover' as laid down by the Supreme Court. The appeal was dismissed. (Paras 1-7) B) Motor Accident Claims - Compensation - Quantum - Section 173 of Motor Vehicles Act, 1988 - The appellant Insurance Company did not challenge the quantum of compensation but only the liability. The court found no error in the Tribunal's award and upheld the same. (Paras 1-7)
Issue of Consideration
Whether the Insurance Company is liable to pay compensation to the claimants when there is a breach of policy conditions, and whether the Tribunal erred in awarding compensation without considering the breach.
Final Decision
The High Court of Gujarat dismissed the appeal and upheld the Tribunal's award, holding that the Insurance Company is liable to pay compensation to the claimants and then recover the same from the insured in accordance with the 'pay and recover' principle.
Law Points
- Motor Vehicles Act
- 1988
- Section 173
- Pay and recover principle
- Breach of policy conditions
- Third party claim
- Liability of insurer
