Insurer Liability to Third Parties Following Premium Cheque Dishonour and Non-Notification to RTA
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Case: HDFC ERGO GENERAL INSURANCE CO. LTD., NAGPUR v. DIPALI WD/O KISHOR SHENDE AND OTHERS
Court: Bombay High Court
Date: 20-07-2026
Law: Employees Compensation Act, Motor Vehicles Act, Insurance Act.
Highlights of the Judgment:
- Analysis of the insurer's statutory liability toward third parties under Sections 147 and 149 of the Motor Vehicles Act.
- Interpretation of Section 64-VB of the Insurance Act regarding policy validity upon dishonour of a premium cheque.
- Mandatory compliance with General Regulation 24 of the India Motor Tariff Rules for effective policy cancellation.
- The legal necessity of informing the Regional Transport Authority to terminate third-party risk effectively.
- Application of the "pay and recover" doctrine to balance insurer rights and claimant protection.
- Judicial reconciliation of conflicting Supreme Court precedents regarding contractual versus statutory insurance obligations.