Shamanna vs The Divisional Manager The Oriental ...

The Supreme Court held that in cases of third party risks, as established in National Insurance Company Ltd. v. Swaran Singh (2004) 3 SCC 297, the insurer is obligated to indemnify the compensation amount payable to the third party, even if the driver had no valid driving license. The Court clarified that the High Court erred in reversing the Tribunal's award that directed the insurance company to pay and recover from the vehicle owner, emphasizing that such discretionary power under Article 142 is exclusive to the Supreme Court. The Court upheld the High Court's enhancement of compensation from Rs.3,55,500/- to Rs.4,94,700/- with interest at 6% per annum.