Case Note & Summary
The appellant, United India Insurance Company Ltd., filed a first appeal challenging the judgment and order dated 04.03.1996 passed by the Motor Accident Claims Tribunal, Amravati, in Claim Petition No. 126/1992. The Tribunal had held the Insurance Company jointly and severally liable to pay Rs. 31,600/- to the claimants (respondents 1 and 2, a minor child and his father) along with proportionate costs and interest at 12% p.a. from the date of petition till realization, along with the owner and driver of the vehicle. The Insurance Company appealed on the ground that there was a breach of policy conditions: (i) no valid permit to ply the vehicle (a Pickup Van bearing No. MWD5982), (ii) no valid driving license, and (iii) the vehicle was not used for the purpose for which it was registered. Although these grounds were raised in the written statement before the Tribunal, they were not pressed at the time of hearing, and the Tribunal did not deal with them. The High Court permitted the appellant to argue these points. However, the appellant's counsel could not point out any evidence on record to establish the defence. The claimants had examined a witness, but the Insurance Company led no evidence. The Court noted that under Section 149 of the Motor Vehicles Act, the burden of proof is on the Insurance Company to prove breach of policy conditions. Since the Insurance Company failed to lead any evidence to discharge that burden, the appeal was dismissed without any order as to costs. The Court clarified that if the Insurance Company had deposited any amount in Court, the claimants would be permitted to withdraw the same along with accrued interest.
Headnote
A) Motor Vehicles Act - Insurance - Burden of Proof - Section 149 Motor Vehicles Act, 1988 - The Insurance Company alleged breach of policy conditions (no valid permit, no valid driving license, vehicle used for unauthorized purpose) but failed to lead any evidence to discharge the burden of proof under Section 149. The Tribunal had not dealt with these grounds, and the appellant could not point to any evidence on record. Held that the Insurance Company cannot avoid liability without proving the breach (Paras 2-4).
Issue of Consideration
Whether the Insurance Company can avoid liability on grounds of breach of policy conditions without leading evidence to prove such breach.
Final Decision
Appeal dismissed without any order as to costs. If the Insurance Company has deposited any amount in Court, the claimants shall be permitted to withdraw the same along with interest accrued.
Law Points
- Burden of proof on insurer under Section 149 Motor Vehicles Act
- 1988
- Breach of policy conditions must be proved by evidence
- No evidence led by insurer results in liability
