Authority: High Court of Chhattisgarh at Bilaspur
Order Date: 05-10-2026
Case Overview
- Appellant: New India Assurance Company Limited (insurance company) represented by Manager T.P Claim Hub.
- Respondents: Eight members of the Dhruv family (Lalita, Raghunandan, Manoj, Manju, Shivnandan, minor Rahul, Kashiram, and Itwari Nishad as driver) residing in Bhatapara, Balodabazar district, Chhattisgarh.
- The dispute concerns Motor Accident Claims Case No. 29/2019 arising from a road accident on 14‑01‑2019 that caused the death of Sumitra Bai.
- The Claims Tribunal (Motor Accident Claims) awarded Rs 10,78,000 compensation under Section 166 of the Motor Vehicles Act, 1988 and directed the insurer to pay the amount first and then recover it from the vehicle owner/driver, noting that the driver (Itwari Nishad) lacked a valid licence and breached policy conditions.
- The insurer appealed under Section 173 of the Motor Vehicles Act, arguing that the breach of policy conditions should exempt it from liability and that the “pay and recover” direction was contrary to law.
Final Outcome
- The High Court, after hearing counsel, held that the Tribunal’s direction is consistent with the Supreme Court decision in Rama Bai vs Amit Minerals and therefore not liable to be interfered with.
- The appeal is dismissed as devoid of merit; the insurer remains bound to satisfy the award and may recover from the owner/driver as directed.
- The Tribunal’s records and a copy of this judgment are to be sent forthwith for compliance and any necessary action.
Topics: Motor Accident Compensation, Insurance Liability