AIROnline 2025 SC 718

Motor Vehicles Act (59 of 1988) , S.147, S.149— Motor accident – Liability of Insurer – Cancellation of insurance policy – Cheque issued towards premium of insurance policy in regard to offending vehicle was dishonoured and intimation about same had been given – There was a gap of more than three months from the date when the insurance policy was liable to be treated as cancelled and the date when the accident took place -In cases decided earlier, Supreme Court has held that in such cases insurer would in law, be absolved from liability to pay the compensation but had directed insurance company to make payment of and thereafter to recover same from owner – Insurance Company had already deposited one-half of total awarded compensation with interest and claimants had withdrawn said amount – Recovery from claimants would not only be harsh but would also amount to setting the clock back – Liberty was given to the insurance Company to recover said 50% amount from the owner of offending vehicle in accordance with law – Claimants shall be entitled to recover balance 50% amount along with interest from the owner of offending vehicle
AIROnline 2016 DEL 256-Partly ReversedAIR 2008 SC 767-Relied onAIR 2012 SC 2817-Relied on

(Para 5.3
5.4
5.5
5.6
5.7
6)
….