{"id":240028,"date":"2020-12-02T15:08:24","date_gmt":"2020-12-02T09:38:24","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=240028"},"modified":"2020-12-11T12:12:22","modified_gmt":"2020-12-11T06:42:22","slug":"mv-act-kar-hc-will-absence-of-valid-and-effective-dl-by-the-offending-driver-absolve-insurance-company-to-pay-compensation-pay-and-recover-principle-applied","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/12\/02\/mv-act-kar-hc-will-absence-of-valid-and-effective-dl-by-the-offending-driver-absolve-insurance-company-to-pay-compensation-pay-and-recover-principle-applied\/","title":{"rendered":"[MV Act] Kar HC | Will absence of valid and effective DL by the offending driver absolve insurance company to pay compensation? \u201cPay and Recover\u201d principle applied"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Karnataka High Court: <\/strong>Ashok G. Nijagannavar, J., allowed the appeal and enhanced the compensation in light of the \u201cpay and recover\u201d principle.<\/p>\n<p style=\"text-align: justify;\">The facts of the case are such that the deceased was travelling as a Cleaner in the lorry when the driver of the said lorry drove in a rash and negligent manner and dashed against another vehicle consequent to which the deceased sustained grievous injuries and later succumbed to it. The dependents filed a petition for compensation before the Motor Accidents Claims Tribunal i.e. MACT as the deceased was the main earning member of the family and due to his untimely death, the claimants lost financial support. The MACT thereby directed to pay the compensation of Rs 5,71,000 along with interest at the rate of 6% p.a. from the date of petition till its realization. Being aggrieved by the same, the petitioner&#8217;s claimants preferred the instant appeal under Section 173(1) Motor Vehicle Act i.e. MV Act for enhancement of compensation.<\/p>\n<p style=\"text-align: justify;\">Counsel for the appellants submitted that on the date of the accident the insurance policy was in force. It was further submitted that as the driver of the offending vehicle had no valid and effective DL, the insurance company is liable to pay the compensation and recover it from the owner of the offending vehicle as per \u201cpay and recover\u201d principle.<\/p>\n<p style=\"text-align: justify;\">Counsel for the respondents submitted that as the driver had no valid and effective DL, hence the insurance company has no liability to pay the compensation.<\/p>\n<p style=\"text-align: justify;\">The Court relied on judgment titled <em>Parminder Singh v. New India Assurance Company Ltd.,<\/em> <a href=\"http:\/\/www.scconline.com\/DocumentLink\/vn3VLAJ3\">(2019) 7 SCC 217<\/a> and observed that as per pay and recover principle the insurance company is liable to pay compensation to the victim and later recover it from the owner of the offending vehicle.<\/p>\n<p style=\"text-align: justify;\">The Court thus held that the compensation granted vide impugned order is too meagre and disproportionate and in view of the ratio laid in <em>National Insurance Company Limited v. Pranay Sethi,<\/em> <a href=\"http:\/\/www.scconline.com\/DocumentLink\/1j5OYsr8\">(2017) 16 SCC 680<\/a>, compensation was enhanced.<\/p>\n<p style=\"text-align: justify;\">In view of the above, petition was allowed and disposed off.[Geetha Bhai v. Amanullah, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/co8D3E2p\"><b>2020 SCC OnLine Kar 1878<\/b><\/a>, decided by 21-01-2020]<\/p>\n<hr \/>\n<p><span style=\"color: #008000;\">Arunima Bose, Editorial Assistant has put this story together<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Karnataka High Court: Ashok G. Nijagannavar, J., allowed the appeal and enhanced the compensation in light of the \u201cpay and recover\u201d principle. <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[2728,31806,31265,29785,30951],"class_list":["post-240028","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-compensation","tag-driving-license","tag-insurance-policy","tag-law","tag-mact"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>[MV Act] Kar HC | Will absence of valid and effective DL by the offending driver absolve insurance company to pay compensation? \u201cPay and Recover\u201d principle applied | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2020\/12\/02\/mv-act-kar-hc-will-absence-of-valid-and-effective-dl-by-the-offending-driver-absolve-insurance-company-to-pay-compensation-pay-and-recover-principle-applied\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"[MV Act] Kar HC | Will absence of valid and effective DL by the offending driver absolve insurance company to pay compensation? \u201cPay and Recover\u201d principle applied\" \/>\n<meta property=\"og:description\" content=\"Karnataka High Court: Ashok G. 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Narendra Prasad, J. dismissed the appeal filed by an Insurance Company against the order passed by Motor Accident Claims Tribunal (MACT). In the instant case, Jyothi and Nagaraj were traveling on a motorcycle and a lorry came in a rash and negligent manner and dashed against\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":274358,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/09\/24\/karnataka-high-court-liability-of-insurance-company-to-compensate-be-absolved-when-driver-dies-of-heart-attack-parked-vehicle-time-of-death-tipper-lorry-legal-news\/","url_meta":{"origin":240028,"position":1},"title":"Karnataka HC | Can Insurance Company&#8217;s liability be absolved in cases where the insured vehicle&#8217;s driver dies due to cardiac arrest while the vehicle was parked at the time of death?","author":"Editor","date":"September 24, 2022","format":false,"excerpt":"\u00a0 \u00a0 Karnataka High Court: While deciding the instant appeal wherein the issue was whether the liability of the Insurance Company is absolved in cases where the driver of an insured vehicle had died due to heart attack when such insured vehicle was not in use at the time of\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Karnataka High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":322804,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/05\/23\/sikkim-hc-sets-aside-mact-judgment-awards-compensation-based-on-just-compensation-concept\/","url_meta":{"origin":240028,"position":2},"title":"Deceased wife travelling in private vehicle of her husband held to be covered as third party; Sikkim HC awards \u201cjust compensation\u201d to mother-in-law and minor child","author":"Editor","date":"May 23, 2024","format":false,"excerpt":"The Court discussed the difference between a gratuitous passenger travelling in a private vehicle that met with an accident, and the deceased wife of the insured in the instant case who was held to be covered as a \u201cthird party\u201d. The distinction proved to be elemental in granting \u201cjust compensation\u201d\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Sikkim High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/Sikkim-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/Sikkim-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/Sikkim-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/Sikkim-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":211197,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/03\/02\/ker-hc-claim-filed-under-mv-act-withdrawn-after-interim-award-subsequent-proceedings-under-workmens-compensation-act-not-barred\/","url_meta":{"origin":240028,"position":3},"title":"Ker HC | Claim filed under MV Act withdrawn after interim award \u2013 subsequent proceedings under Workmen\u2019s Compensation Act not barred","author":"Bhumika Indulia","date":"March 2, 2019","format":false,"excerpt":"Kerala High Court: The Division Bench of K. Harilal and Annie John, JJ. dismissed an appeal filed by an insurance company against the order of Commissioner for Workmen\u2019s Compensation (WCC) directing it to pay a certain sum of money to the respondent herein. Respondent herein had filed an application under\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":324274,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/06\/13\/sikkim-hc-upholds-mact-judgment-gratuitous-passenger-not-insured-in-act-policy\/","url_meta":{"origin":240028,"position":4},"title":"[Comprehensive Policy or Act Policy] | \u201cNo premium was paid to cover a gratuitous passenger\u201d; Sikkim HC upholds compensation granted by MACT as per an Act Policy","author":"Editor","date":"June 13, 2024","format":false,"excerpt":"The Court referred to National Insurance Co. Ltd v. Balakrishnan, wherein the Supreme Court had distinguished between a Comprehensive\/Package Policy and Act Policy by stating that an Act Policy cannot cover a third-party risk of an occupant in a car, but a Comprehensive\/Package Policy would cover such risk.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Sikkim High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/Sikkim-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/Sikkim-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/Sikkim-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/Sikkim-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":148581,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/08\/09\/quantum-of-compensation-for-a-bachelors-accidental-death-depends-on-the-number-of-dependants-on-the-income\/","url_meta":{"origin":240028,"position":5},"title":"Quantum of compensation for a bachelor\u2019s accidental death depends on the number of dependants on the income","author":"Saba","date":"August 9, 2017","format":false,"excerpt":"Hyderabad High Court: The Single Bench partly allowed an insurance claim petition reducing the quantum of compensation granted to the respondents. 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