Amudhavalli vs Hdfc Ergo General Insurance Co. Ltd

The Supreme Court examined the issue of 'pay and recover' in the context of insurance liability, where the insurance company was held liable despite the vehicle being a goods vehicle carrying passengers for fare. The Court considered whether the insurer could recover the amount paid from the insured, especially when the vehicle was used contrary to policy conditions. The Court upheld the liability of the insurance company and clarified the principles governing pay and recover in such cases. The judgment emphasizes the importance of policy conditions and the insurer's obligations in cases of unauthorized use.