Doctrine of Pay and Recover applies where insurance company is exonerated but remains liable to satisfy the award.

The case arises from a motor vehicle accident on 05.01.2018 involving a truck/trailer (No. C.G. 04/L.S./1446), which resulted in the death of Birbal Prasad Yadav

The Appellants in MAC 1048/2019 (widow and sons of the deceased) sought enhancement of the compensation awarded by the 2nd Additional Motor Accident Claims Tribunal, Bilaspur, on 30.04.2019

Simultaneously, the Insurance Company (MAC 1698/2019) sought to be exonerated from liability

A similar claim regarding another deceased in the same accident (Heeraram) had previously resulted in the application of the "pay and recover" principle against the insurer

1. Whether the principle of "pay and recover" is applicable to the Insurance Company in this instance, consistent with previous adjudications involving the same accident

2. Whether the compensation awarded by the Claims Tribunal was "just and proper" or required enhancement based on prospective income and conventional heads

The Court applied the doctrine of "pay and recover," which mandates that an insurer must first satisfy the award to third-party claimants and subsequently recover the amount from the vehicle owner if policy conditions were breached

The Court followed the precedent set by a coordinate Bench in Branch Manager, New India Assurance Co. Ltd. v. Pawan Saay & Others (MAC No. 51/2021), which dealt with the same accident

The Court applied standard principles for calculating dependency, including a 25% addition for future prospects, a 1/4th deduction for personal expenses, and the application of a multiplier (14) based on age

The Court noted that a coordinate Bench had already affirmed the "pay and recover" principle for the same accident in the case of another victim, Heeraram, thereby necessitating the same treatment for the present insurer

Regarding quantum, the Court found the Tribunal’s assessment of monthly income (₹4,500) inadequate and revised it to ₹7,800

The Court recalculated the loss of dependency by adding 25% for future prospects and applying a multiplier of 14

It also adjusted the awards under conventional heads—loss of spousal consortium, funeral expenses, and loss of estate—to align with current judicial standards, and introduced "loss of filial consortium" for the two surviving sons

The Court held that the total compensation be enhanced from ₹7,78,750 to ₹13,93,500, resulting in an additional amount of ₹6,14,750 with 6% interest per annum

The Insurance Company was directed to satisfy the enhanced award first and was subsequently granted the right to recover the same from the vehicle owner