(1.) THE Petitioner -insurer has filed this writ petition challenging the order dated 19.10.2001 by which the 2nd Motor Accidents Claims Tribunal, Keonjhar, has rejected the application filed by the petitioner with a prayer to set aside the award passed by the Tribunal directing payment of compensation of Rs. 1,30,000/ - to the claimants -opposite party Nos. 1 to 3 by the insurer -petitioner, on the basis of a compromise effected between the insurer and the claimants in a LokAdalat held on 28/29.10.2000. The compromise petition was made a part of the award. The standard form of compromise contains certain conditions which are as follows :
(2.) THE case of the insurer is that the compromise entered into in the Lok Adalat was subject to one or more of the above conditions, as the case may be. In some cases, it is alleged by the insurer, the driving licence of the driver of the offending vehicle was not valid while in some other cases, existence of valid policy of insurance is disputed. So, as per the case of the insurer, they are not liable to pay the amount under the award which was passed on the basis of the compromise entered into in the Lok Adalat. According to them, in case of violation of policy conditions as well as in cases where there is no valid insurance policy, it is the owner of the offending vehicle, who is liable to satisfy the awarded amount.
(3.) LAW is well settled that even if there was violation of anypolicy condition, the insurer is statutorily liable to pay the compensationto third parties on account of the certificate of insurance issuedand shall be entitled to recover from the insured the amount paidto the third parties.