Bengaluru: The Karnataka high court ruled that an insurance company cannot be required to pay compensation first and recover it from a vehicle owner in every policy violation motor accident case. The court held the ‘pay and recover’ concept does not apply to family incidents as it does to third-party claims.

A tragic motorbike accident in Hassan district prompted the verdict. A Halebid resident in Belur taluk was riding pillion on her husband Manjunatha's motorbike. Manjula died of head injuries after his hasty and careless riding caused the motorbike to lose control.

At the Bengaluru automobile accident claims tribunal, their children Pavan and Pavithra sought compensation from Reliance General Insurance Company Ltd., which insured the motorbike. The tribunal granted the children Rs 25.5 lakh with 6% interest in April 2023. It found the insurer not responsible because Manjunatha, who owned and drove the motorcycle, violated the insurance contract by driving without a license.

Tribunal ordered him to pay reparation. The children appealed to the high court for larger compensation and to have the insurance pay first and collect from their father.

Justice Shivashankar Amarannavar denied it. The court recognized that the plaintiffs' father, who owned the insured car, caused the collision. The judge concluded that the insurance could not pay compensation first and collect it from him since he rode without a license.