A Global Figure Of Rs 1 Lakh, And The Insurer Must Pay It Now
Where the policy does not answer but the claimant should not wait, the insurer is directed to pay and then recover from the owner of the offending vehicle.
The Court allowed the appeal in part and modified the Tribunal's award, holding the claimant entitled to global compensation of Rs 1,00,000 with interest at 6 per cent from the date of the petition. The insurance company is to deposit the amount within eight weeks and recover it from the owner of the offending vehicle.
- Pay and recover keeps the claimant out of the dispute between insurer and owner.
- A global figure is used where the heads cannot sensibly be itemised.
- Six per cent, as the Tribunal had awarded, from the date of the petition until realisation.
- Eight weeks for the deposit, with recovery to follow separately.
- Court
- High Court of Karnataka at Bengaluru
- Bench
- Justice K.MANMADHA RAO
- Citation
- MFA No. 297 of 2024
- Case
- MFA No. 297 of 2024
- Decided
- 3 September 2026
- Outcome
- Appeal partly allowed; global compensation of Rs 1,00,000 with pay and recover
What was awarded
The claimant was held entitled to global compensation of Rs 1,00,000, together with interest at 6 per cent per annum as awarded by the Tribunal, from the date of filing the petition until realisation.
The Tribunal's judgment and award of 28 November 2023 was modified to that extent, and the appeal allowed in part.
Who pays, and who ultimately bears it
The insurance company is to deposit the compensation with any accrued interest within eight weeks.
It is then to recover that amount from the owner of the offending vehicle.
The Registry was directed to return the trial court records to the Tribunal with a certified copy of the judgment without delay.
Who argued it
Appearances as recorded in the judgment of the Court.
Frequently asked
What does pay and recover mean?
The insurer pays the claimant first and then recovers the amount from the vehicle's owner.
What is global compensation?
A single consolidated figure, used where the individual heads cannot sensibly be worked out on the evidence.
Seeking a pay-and-recover direction
- Establish the claimant's entitlement first; pay and recover is about who advances the money, not whether it is due.
- Where the heads cannot be itemised on the evidence, ask for a global figure rather than losing the claim.
- Ask for interest from the date of the petition, not the award.
- Seek a deposit deadline so recovery proceedings do not delay payment.
Source. High Court of Karnataka at Bengaluru, MFA No. 297 of 2024, decided 3 September 2026 by Justice K.MANMADHA RAO. This explainer is written from the judgment text as reported.
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