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Apart from the above, insurer is not liable under NFL,
if it is not ultimately liable. Some of the High Courts are
of the view that even the insurer has right to defend a
claim under NFL, except on the ground of negligence.

For example, in case of a claim arisen out of the use of
a motor vehicle for a purpose not permitted by the permit
and in contravention to the Act, the insurer have a right
to defend since the same is a breach of policy terms
and condition vis-a-vis provisions of Motor Vehicles Act
and have nothing to do with the negligence aspect of
the claim.

Though, the award under NFL appears to be an interim
award, legally it is an award and an appeals lies there
against.

Q13. Write a short note on "Hit and Run Accident."
Ans. Vehicular victims can claim for compensation only in
case the identity of the vehicle is known. And as such,
a vehicular victim cannot claim for compensation, in case
the identity of the vehicle is not known.

Hit and run accident is a motor accident arising out of
the use of a motor vehicle or motor vehicles the identity
whereof cannot be ascertained in spite of reasonable
efforts for the purpose.

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