#Third-Party Claims

Allahabad HC rules that insurers remain liable for motor accident compensation even if the premium cheque is dishonored, provided the policy was issued. The court directed payment with 7% interest, reinforcing third-party protection under the Motor Vehicles Act and rejecting insurer attempts to evade liability on technical grounds.

Punjab & Haryana High Court reaffirms that the registered owner of a vehicle under Section 2(30) of the Motor Vehicles Act remains statutorily liable for compensation to accident victims, even if the vehicle was sold but the transfer was not recorded with the registering authority. The ruling underscores that victims' rights to compensation prevail over informal sale agreements.

Madras High Court holds that where dispute is only over entitlement to payment among rival claimants, not contractual breach, court may decide without referring to arbitration under Section 11.