#insurance recovery

Calcutta High Court rules that insurers cannot reject motor accident claims solely based on delayed FIR filing or unverified allegations of fake licenses. The court mandates a prior inquiry and hearing for the vehicle owner before denying compensation, enhancing the award to Rs. 14 lakh with 6% interest. This reinforces procedural fairness in third-party liability claims under the Motor Vehicles Act.

Madras High Court rules that an insurer cannot recover compensation paid to accident victims unless it conclusively proves the driver’s license was invalid at the time of the accident. The judgment underscores that recovery proceedings under Section 149 of the Motor Vehicles Act demand strict factual accuracy, not mere allegations, to deny insurer liability.