#Pay and recover order

The Madhya Pradesh High Court ruled that an insurance company remains liable for third-party compensation under Section 149 of the Motor Vehicles Act, 1988, even if the vehicle lacked a valid permit. The court upheld the 'pay and recover' principle, allowing the insurer to later reclaim the amount from the vehicle owner, reinforcing strict liability for insurers in motor accident claims.

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.