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New India Assurance Co., Shimla vs Kamla And Ors on 27 March, 2001

2. If there is ever a doubt in the principle, it is only in respect of cases where the insurance company was not liable in the first place or there was no policy of insurance to cover the risk but still the insurance FAO No.3650 of 2011(O&M) -3- company was made liable for satisfying the claim for a third party. In such a situation, doubting the pay and recover principle will be perfectly justified. However, in such a situation where there was a valid insurance and the person was making the claim was also entitled to be protected in terms of Section 147 of the Motor Vehicles Act that provides for compulsory insurance cover, the right of liability of the insurance company is statutorily laid down through the provisions in Section 149(4) proviso Section 149(5) and this point has also been brought by the judgment of the Hon'ble Supreme Court in New India Assurance Co., Shimla v. Kamla,(2001) 4 SCC 342.
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