In plain words: the driver who hit you may not have the money — but their insurer does. That is why motor insurance is compulsory, and why the insurer is the main party in most accident claims.
Why third-party insurance matters
Every motor vehicle must carry third-party insurance, which covers the owner's liability to people hurt by the vehicle. In a MACT claim the insurer is made a party, and in most cases the insurer satisfies the award — so a victim is not left chasing an individual who cannot pay.
The limited defences an insurer can raise
An insurer cannot contest a claim on any ground it likes. The law restricts it to specified defences, such as a serious breach of the policy — for example the vehicle being driven without a valid driving licence, used in clear breach of permit conditions, or the policy being obtained by fraud. Minor or technical lapses usually will not let the insurer escape paying the victim.
The 'pay and recover' principle
Here is the protection that matters most to victims. Even where there is a breach (say, a licence issue), courts often apply pay and recover: the insurer is directed to pay the victim first, and then recover that amount from the owner or driver who breached the policy. The victim is not made to suffer for a dispute between the insurer and the owner.
When the owner may bear the cost
- The vehicle was uninsured — the owner is personally liable.
- A genuine, proven fundamental breach of the policy — the insurer may ultimately recover from the owner.
What claimants should do
Always implead the insurer, produce the policy and vehicle details, and be ready to counter technical defences. Where the insurer alleges a breach, insist on pay-and-recover so your compensation is not held hostage to that dispute.
Frequently asked questions
The driver had no licence — do I lose my claim? Usually not — the insurer may be ordered to pay you and recover from the owner.
What if the vehicle was uninsured? The owner is personally liable; other routes (such as the hit-and-run scheme for untraced vehicles) may also help.
Can the insurer appeal a high award? Yes, but it must still generally satisfy or deposit the award to appeal.
How Vakil Help Desk helps
Vakil Help Desk takes on the insurer directly — countering technical defences, invoking pay-and-recover, and ensuring the victim is paid. If an insurer is resisting your rightful claim, we can help you hold them to their statutory liability.
This article is for general legal awareness, not individual legal advice. Compensation depends on the facts, the evidence and the law as applied by the Tribunal, and figures are revised over time. Please consult a lawyer before acting.