Case Note & Summary
The case arises from a motor accident claim filed by the wife and children of Sanjay Gujar, who died in a road accident on 28 December 2004. The deceased was riding a motorcycle when a Minidor Auto Rickshaw owned by respondent no.6 and driven by respondent no.7 collided with him. The claimants sought compensation from the owner, driver, and insurer of the auto rickshaw. The Motor Accident Claims Tribunal (MACT), Pune, awarded total compensation of Rs.11,38,000/- to the claimants, holding the insurer liable to pay. The insurer, United India Insurance Company Ltd., appealed against the award, primarily contending that the driver of the auto rickshaw did not possess a valid driving license at the time of the accident, which constituted a breach of policy conditions, and therefore the insurer should not be liable. The High Court examined the evidence on record. The insurer had produced a letter from the Regional Transport Office (RTO) stating that the driving license number mentioned in the claim petition was not found in their records. However, the court noted that the insurer did not examine the RTO officer who issued the letter, nor did it examine the driver of the auto rickshaw to prove that he did not have a license. The court reiterated the settled legal position that the burden to prove breach of policy conditions lies on the insurer, and mere production of a letter from the RTO is insufficient to discharge that burden. The court found no error in the Tribunal's finding that the insurer failed to prove the alleged breach. Consequently, the appeal was dismissed, and the award of compensation was upheld. The court also disposed of the connected civil application.
Headnote
A) Motor Accident Claims - Driving License - Breach of Policy Conditions - Burden of Proof - The insurer contended that the driver of the offending auto rickshaw did not have a valid driving license at the time of accident, thereby breaching policy conditions. The court held that the burden to prove such breach lies on the insurer, and mere production of a report from the RTO stating that the license number was not found in records is insufficient to discharge that burden, especially when the insurer did not examine the RTO officer or the driver. The Tribunal's finding that the insurer failed to prove the breach was upheld. (Paras 4-6) B) Motor Accident Claims - Compensation - Quantum - The Tribunal awarded Rs.11,38,000/- to the claimants (wife and children of deceased). The appeal challenged only the liability aspect, not the quantum. The High Court found no error in the Tribunal's decision on liability and dismissed the appeal. (Paras 2, 7)
Issue of Consideration
Whether the Insurance Company is liable to pay compensation when it alleges that the driver of the offending vehicle did not possess a valid driving license at the time of the accident.
Final Decision
The First Appeal is dismissed. The judgment and order dated 18.04.2015 passed by the Additional Member, Motor Accident Claims Tribunal, Pune in M.A.C.P. No.217 of 2006 is confirmed. Civil Application No.1404 of 2016 is disposed of accordingly.
Law Points
- Burden of proof on insurer to establish breach of policy conditions
- Standard of proof for driving license validity
- Liability of insurer in motor accident claims
