Supreme Court’s Ruling on Compensation and Recovery in Hazardous Material Accidents

The Supreme Court held that drivers of vehicles carrying hazardous substances must possess a valid endorsement under Rule 9 of the Central Motor Vehicles Rules, 1989. This endorsement requires specialized training to ensure safety.

In a case involving an oil tanker accident, the Court upheld the insurer’s liability to compensate the victims but permitted recovery from the vehicle owner, as the driver lacked the mandatory Rule 9 endorsement.

The Court clarified that this absence constitutes a breach of statutory conditions and impacts driving competence, thus justifying the “pay and recover” principle.