Must an insurer satisfy a third-party award first and recover from the insured where a fundamental breach of policy conditions is proved?

Motor Vehicles Act, 1988 — s.61 — s.66 — Third-party claim — Fundamental breach of policy conditions — Pay and recover — Motor Vehicles Act, 1988 — s.147 — Third-party risk — Pay and recover — Held: An insurer must satisfy a third-party award first and recover from the insured, the principle of pay and recover applying even where a fundamental breach of policy conditions is proved. (¶14) Motor Vehicles Act, 1988 — s.61 — Unregistered trailer — Liability of the tractor's insurer — Held further: The insurer of a tractor is liable for third-party compensation though an unregistered trailer was attached to it, the trailer having no independent motor of its own. (¶14) Motor Vehicles Act, 1988 — s.149 — Driving licence — Onus on the insurer — Held further: The onus lies on the insurer to prove that the driver held no valid driving licence and that policy conditions were breached. Appeal partly allowed. (¶13, 15)