#Third Party Claim

The Bombay High Court ruled that an insurer cannot deny third-party compensation merely on allegations of a driver’s invalid license if it fails to prove the claim through proper evidence. This reinforces the statutory obligation under Section 147 of the Motor Vehicles Act, ensuring victims are protected regardless of policy breaches between insurer and insured, and places the burden squarely on the insurer to substantiate defenses.

Madhya Pradesh High Court reaffirms that insurers remain statutorily liable to compensate third parties in motor accidents even if the driver lacks a valid licence, with the right to recover the amount from the vehicle owner/driver. The ruling enhances compensation to Rs. 50,000 and underscores the insurer’s obligation under Section 149 MV Act, protecting victims’ rights while balancing insurer recourse.