Rama Bai vs Amit Minerals 2025 INSC 1162 - Motor Accident Compensation - Pay & Recover
Motor Accident Compensation - High Court enhanced the compensation payable to the claimant and absolved Insurance Company from the liability to pay the amount, fastening the same on driver and the owner respectively. Allowing appeal, SC held:on the date of accident, the driver had no valid license and the licence was not renewed. The insurance company was entitled to take a valid defence in that regard under Section 149 (2)(a)(ii) as the driver of the offending vehicle was not duly licensed, to avoid its liability to pay the compensation. The conditions in law are satisfied to absolve the insurance company from the payment of compensation. - The insurer directed to satisfy the award, which however can be recovered by the insurer from the insured-owner of the vehicle. (Para 6-7)
Case Info
Case name: Rama Bai v. M/s Amit Minerals Through Incharge Officer/Competent Officer & Anrs.
- Neutral citation: Civil Appeal No. 9669 of 2024, Supreme Court of India.
- Coram: Justice K. Vinod Chandran; Justice N.V. Anjaria.
- Judgment date: 24 September 2025.
Caselaws and Citations
- Shamanna and Another v. Divisional Manager, Oriental Insurance Co. Ltd. and others: [(2018) 9 SCC 650].
- Parminder Singh v. New India Assurance Co. Ltd. and Others: [(2019) 7 SCC 217].
- National Insurance Co. Ltd. v. Swaran Singh and Others: [(2004) 3 SCC 297].
- National Insurance Co. Ltd. v. Parvathneni and Another: [(2009) 8 SCC 785].
- National Insurance Co. Ltd. v. Yellamma: [(2008) 7 SCC 526].
- Samundra Devi v. Narendra Kaur: [(2008) 9 SCC 100].
- Oriental Insurance Co. Ltd. v. Brij Mohan: [(2007) 7 SCC 56].
- New India Insurance Co. v. Darshana Devi: [(2008) 7 SCC 416].
- Ram Babu Tiwari v. United India Insurance Co. Ltd. and Others: [(2008) 8 SCC 165].
Statutes/Laws Referred
- Motor Vehicles Act, 1988:
- Section 15: Renewal of Driving Licences.
- Section 149(2)(a)(ii): Defence for insurer—driver not duly licensed.
- Doctrine applied: “Pay and recover” (insurer to satisfy award, then recover from insured).
Tulip Kanth