Case Note & Summary
The appeal was filed by National Insurance Co. Ltd. against the judgment and award dated 27/10/2014 of the Motor Accident Claim Tribunal, Pune, in M.A.C.P. No.793/2012. The Tribunal had awarded compensation of Rs.81,25,000 with interest at 7.5% p.a. to the respondents (claimants) for the death of Anand Hegde in a motor vehicular accident on 11/08/2012. The deceased, aged 33, was a Senior Design Engineer at Geometric Limited. The accident occurred when a mini truck driven by Kishor Gavai, owned by respondent no.6 and insured by the appellant, dashed against his scooter. The Tribunal found that the accident was due to the rash and negligent driving of the truck driver. It also found that the driver's license was valid only till 09/12/2004 and had not been renewed, constituting a breach of policy conditions. However, relying on S. Iyyapan v. United India Insurance Co. Ltd. and Oriental Insurance Co. Ltd. v. Suhas, the Tribunal held the Insurance Company liable to pay compensation with a right to recover from the owner. The Insurance Company appealed, challenging the liability. The High Court upheld the Tribunal's findings, confirming that the Insurance Company must pay the award amount to the claimants and then recover it from the owner. The appeal was dismissed with no order as to costs.
Headnote
A) Motor Accident Claims - Invalid Driving License - Pay and Recover - Section 166 Motor Vehicles Act, 1988 - The Insurance Company is liable to pay compensation to third parties even if the driver did not hold a valid driving license, but is entitled to recover the amount from the insured owner. The Tribunal's finding of breach of policy conditions was upheld, but the Insurance Company was directed to pay the award amount and then recover it from the owner. (Paras 6-10)
B) Motor Accident Claims - Compensation - Quantum - Section 166 Motor Vehicles Act, 1988 - The High Court did not interfere with the quantum of compensation of Rs.81,25,000 awarded by the Tribunal for the death of a 33-year-old Senior Design Engineer, as the same was just and proper. (Para 10)
Issue of Consideration
Whether the Insurance Company is liable to pay compensation to third parties when the driver of the insured vehicle did not hold a valid driving license at the time of the accident.
Final Decision
The appeal is dismissed. The Insurance Company is directed to pay the award amount to the claimants and then recover the same from the owner of the vehicle in accordance with law. No order as to costs.
Law Points
- Pay and recover principle
- breach of policy conditions
- invalid driving license
- Motor Vehicles Act
- 1988 Section 166
- compensation for death
Case Details
2019 LawText (BOM) (06) 96
First Appeal No. 50 of 2016
Mr. Amol Gatne for the appellant, Mr. Yuvraj P. Narvankar for respondent nos.1 to 5
National Insurance Co. Ltd.
Pallavi Anand Hegde & Ors.
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Nature of Litigation
Appeal against judgment and award of Motor Accident Claim Tribunal in a claim petition under Section 166 of Motor Vehicles Act, 1988.
Remedy Sought
The appellant Insurance Company sought to set aside the award and avoid liability to pay compensation.
Filing Reason
The Insurance Company challenged the Tribunal's order directing it to pay compensation despite the driver not holding a valid driving license.
Previous Decisions
The Motor Accident Claim Tribunal, Pune, awarded Rs.81,25,000 with interest at 7.5% p.a. to the claimants, holding the Insurance Company liable to pay with right to recover from the owner.
Issues
Whether the Insurance Company is liable to pay compensation to third parties when the driver of the insured vehicle did not hold a valid driving license at the time of the accident.
Submissions/Arguments
The appellant Insurance Company argued that the driver did not hold a valid driving license, constituting a breach of policy conditions, and thus the Insurance Company is not liable to indemnify the insured.
The respondents (claimants) contended that the Insurance Company is liable to pay compensation to third parties and may recover from the owner.
Ratio Decidendi
The Insurance Company is liable to pay compensation to third parties even if the driver did not hold a valid driving license, but is entitled to recover the amount from the insured owner under the 'pay and recover' principle.
Judgment Excerpts
The Claims Tribunal has recorded a finding that the driving license of the driver Kishor Gavai was valid till 09/12/2004. He had not renewed the driving license since December, 2004.
The Tribunal held that the appellant-Insurance Company has proved that the insured had committed breach of policy conditions.
Relying upon the decision of the Apex Court in S. Iyyapan v/s. M/s. United India Insurance Co. Ltd. and anr. AIR 2013 SC 2262 and the decision of this Court in Oriental Insurance Co. Ltd. V/s. Suhas and anr., the Tribunal held that the Insurance Company is liable to pay compensation with a right to recover from the owner.
Procedural History
The claim petition was filed under Section 166 of Motor Vehicles Act, 1988 before the Motor Accident Claim Tribunal, Pune, which awarded compensation on 27/10/2014. The Insurance Company filed First Appeal No. 50 of 2016 before the Bombay High Court. The appeal was heard finally on 21/02/2019 and judgment pronounced on 21/06/2019.
Acts & Sections
- Motor Vehicles Act, 1988: Section 166
