Section 173(1) of the Motor Vehicles Act, 1988: 'Pay and Recover' Relief Refused After Insurance Policy Was Cancelled Due to Dishonoured Premium Cheque: Madhya Pradesh High Court

Introduction The Madhya Pradesh High Court has held that an Insurance Company cannot be directed to pay compensation under the 'Pay and Recover' principle when the insurance policy had already been cancelled due to dishonour of the premium cheque and the cancellation was duly intimated to the insured before the accident. The Court dismissed the appeal filed by Bhairam, affirming the order of the Motor Accident Claims Tribunal that had…