FOR BREACH OF POLICY INSURANCE, COMPANY IS LIABLE TO PAY THIRD PARTY AND RECOVER FROM INSURED: KARNATAKA HGH COURT The Karnataka High Court has held that even if the breach of any policy condition under section 149 of the Motor Vehicles Act is fundamental, the insurer is liable to compensate the third party and recover the same from the insured. In this case, the appeal was preferred against the judgment and award passed by Additional Senior Civil Judge, wherein the Tribunal awarded a compensation of Rs. 2, 88, 000/- with an interest rate of 7% per annum and exonerated the liability of the Insurance Company and directed the private respondents to pay compensation. The Court relied on the decision of Sri Raja Lingaiah v. Sri Manju @ Manja and Another 2014, wherein it was held that, the Insurance Company having received the premium for one year cannot contend that it is not liable to pay the compensation, more particularly when the claim is made by a third party. The Court held that the insurer is liable to indemnify the award and thereafter recover the same from the owner, if there is breach or violation of terms and conditions of the policy, in accordance with law Accordingly, the appeal was allowed in part and the order of the Tribunal was modified by directing the Insurance Company to pay the compensation to the tune of Rs. 4, 88, 000/- to the claimant. Reddy & Reddy Law Firm meticulously refine, modify, and custom tailor our legal representation to achieve the best possible results for our clients. Our attorneys have many years of experience in civil as well as criminal litigation matters.