#MACT compensation

MP High Court reaffirms that insurance companies cannot evade third-party liability under the Motor Vehicles Act, 1988, even if the vehicle lacks a valid permit. The ruling mandates compensation to victims with recovery rights against the vehicle owner, reinforcing the 'pay and recover' doctrine under Section 149 of the Act.

Gauhati High Court rules that a motor insurance policy issued after the accident date but backdated is fraudulent and void ab initio, absolving the insurer of liability. The ruling underscores that claimants must recover compensation directly from the vehicle owner, not the insurer, regardless of a prior MACT award.

The Punjab & Haryana High Court ruled that statutory liability under the Motor Vehicles Act persists with the registered owner for motor accident compensation claims, even after private sale, unless the transfer is formally recorded with the RTO. This judgment reinforces victim protection by preventing liability evasion through unregistered transactions, directly impacting sellers, buyers, and insurance stakeholders in motor accident claims.