Motor Vehicles Act, 1988 (MVA) – Sections 149 and 150; Motor Vehicles (Amendment) Act, 2019 – These appeals contested a Motor Accident Claims Tribunal award that mandated an insurer to first pay compensation to accident victims and then recover it from the vehicle owner. The accident, which resulted in death and injury due to a rashly driven motorcycle by an unlicensed rider, occurred on 19.08.2022.
The appellant-insurer argued that the Motor Vehicles (Amendment) Act, 2019, effective from 01.04.2022, deleted the ‘pay and recovery’ proviso from Section 150 (erstwhile Section 149), thereby removing their obligation for such recovery. Conversely, the claimants contended that since the insurance policy was issued on 30.03.2022, prior to the amendment’s effective date, the previous law containing the ‘pay and recovery’ clause should apply.