Case Note & Summary
The case arises from a motor accident claim filed by the parents of Sachin Shankar Rane, who died as a pillion rider on a motorcycle when an unknown Maruti car dashed into the motorcycle. The claimants sought compensation from the owner of the motorcycle and the Insurance Company. The Tribunal awarded Rs.4,26,900/-. The Insurance Company appealed, arguing that the driver of the motorcycle did not hold a valid driving licence, thus breaching policy conditions. The Court held that since the accident was caused by a third-party unknown vehicle and not by the motorcycle, the Insurance Company could not avoid liability on the ground of the driver's invalid licence. The appeal was dismissed, and the compensation was upheld.
Headnote
A) Motor Accident Claims - Third Party Liability - Invalid Driving Licence - The Insurance Company sought to avoid liability on the ground that the driver of the motorcycle did not hold a valid driving licence. The Court held that since the accident was caused by an unknown Maruti car and not by the motorcycle, the breach of policy conditions regarding the driver's licence was not a relevant factor for the claim of the pillion rider. The liability of the Insurance Company towards third parties (including pillion riders) is not vitiated by the absence of a valid driving licence of the insured vehicle's driver when the accident was not caused by that vehicle. (Paras 1-10)
B) Motor Accident Claims - Compensation - Quantum - The Tribunal awarded compensation of Rs.4,26,900/- to the parents of the deceased, a 19-year-old technician earning Rs.3,300/- per month. The Court upheld the quantum, noting that the multiplier and dependency calculation were correctly applied. (Paras 1-10)
Issue of Consideration
Whether the Insurance Company can avoid liability on the ground that the driver of the motorcycle did not hold a valid driving licence, when the deceased was a pillion rider and the accident was caused by a third-party unknown vehicle.
Final Decision
The appeal is dismissed. The judgment and award of the Motor Accident Claims Tribunal, Thane, dated 10th May 2011 in Motor Accident Claim Petition No.651 of 2009 is upheld. The Insurance Company is directed to pay the awarded amount to the claimants.
Law Points
- Motor Accident Claims
- Third Party Liability
- Breach of Policy Conditions
- Invalid Driving Licence
- Pillion Rider
- Compensation
Case Details
2023 LawText (BOM) (06) 73
FIRST APPEAL NO.722 OF 2012
Mr.Nikhil Mehta i/b. KMC Legal Venture, Advocate for the Appellant. Ms.Rina Kundu, Advocate for the Respondents No.1 and 2.
IFFCO TOKIO GENERAL INSURANCE COMPANY LIMITED
SHANKAR G. RANE, MRS.SUHASINI SHANKAR RANE, MR.SUKHDEV BHAURAO KALE
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Nature of Litigation
Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition for compensation for death in motor accident.
Remedy Sought
The Insurance Company sought to set aside the award and avoid liability on the ground of invalid driving licence of the motorcycle driver.
Filing Reason
The Insurance Company appealed against the Tribunal's award of compensation to the parents of the deceased pillion rider.
Previous Decisions
The Motor Accident Claims Tribunal, Thane, passed judgment and award dated 10th May 2011 in Motor Accident Claim Petition No.651 of 2009, awarding Rs.4,26,900/- to the claimants.
Issues
Whether the Insurance Company can avoid liability on the ground that the driver of the motorcycle did not hold a valid driving licence, when the deceased was a pillion rider and the accident was caused by a third-party unknown vehicle.
Submissions/Arguments
Appellant (Insurance Company): The driver of the motorcycle did not hold a valid driving licence; the licence produced was in the name of another person, thus there was a breach of policy conditions, and the Insurance Company is not liable.
Respondents (Claimants): The accident was caused by an unknown Maruti car, not by the motorcycle; the pillion rider was a third party; the Insurance Company is liable to pay compensation.
Ratio Decidendi
In a motor accident claim by a pillion rider against the insurer of the motorcycle, the Insurance Company cannot avoid liability on the ground that the driver of the motorcycle did not hold a valid driving licence, when the accident was caused by a third-party vehicle and not by the insured motorcycle. The breach of policy conditions regarding the driver's licence is not a relevant factor for the claim of a third party (pillion rider) when the accident was not caused by the insured vehicle.
Judgment Excerpts
The issue that has been raised by the Insurance Company is that, the driving licence filed by the Applicants in the name of one Milind Sukhdev Kale, who was driving the motorcycle, has been found to be in the name of one Gafar Abdul Hasan Saiyyed, and that, at the time of the accident, the driver was not holding a valid driving licence and therefore there was breach of the terms and conditions of the policy.
The accident was caused by an unknown Maruti car and not by the motorcycle. Therefore, the question of breach of policy conditions on account of the driver not holding a valid driving licence does not arise.
Procedural History
The claimants filed Motor Accident Claim Petition No.651 of 2009 before the Motor Accident Claims Tribunal, Thane, seeking compensation for the death of Sachin Shankar Rane. The Tribunal passed judgment and award on 10th May 2011, awarding Rs.4,26,900/-. The Insurance Company appealed against the award before the Bombay High Court in First Appeal No.722 of 2012.
Acts & Sections
- Motor Vehicles Act, 1988:
