Doctrine of "Pay and Recover" applies to third-party claims despite driver's lack of valid license.

On August 11, 2009, the deceased, Shobhanaben Sumanbhai Parekh, was struck by a motorcycle driven rashly by Respondent No. 1 while walking as a pedestrian; she subsequently succumbed to her injuries

The Motor Accident Claims Tribunal (MACT), Navsari, awarded Rs. 4,21,680/- in compensation but exonerated the Insurance Company (Respondent No. 3) because the driver lacked a valid license on the date of the accident

The appellants (claimants) challenged the award seeking a quantum enhancement and an order for the insurer to "pay and recover"

1. Whether the learned Tribunal erred in assessing the monthly income and future prospects of the deceased for calculating compensation

2. Whether the Insurance Company can be exonerated from liability toward third parties due to the driver's invalid license

The court applied the minimum wage standards for skilled workers notified by the Government of Gujarat

It followed the principles for calculating future prospects and conventional heads of loss established in National Insurance Co. Ltd. v. Pranay Sethi (2017) and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram (2018) regarding parental and filial consortium

Regarding liability, the court applied the "pay and recover" doctrine from National Insurance Co. Ltd. v. Swaran Singh (2004), which protects the rights of third parties even when a driver lacks a valid license

The court found the Tribunal’s income assessment of Rs. 3,000/- too low given the minimum wage for skilled workers was Rs. 3,880/-; it reassessed the income at Rs. 4,000/-

Applying Pranay Sethi, the court added 40% for future prospects and applied a multiplier of 15

For the 4 legal heirs, it awarded consortium at Rs. 48,400/- each per Magma General

On the issue of liability, while evidence showed the driver’s license had expired on 01.01.2007 and was renewed only after the accident on 13.08.2009, the court held that under the Swaran Singh precedent, the insurer must satisfy the award in favor of third parties first and subsequently recover the amount from the owner and driver

The court modified the liability portion, directing the Insurance Company to satisfy the entire award to the claimants and granting it the liberty to recover the sum from the owner and driver through an execution petition