Case Note & Summary
The case arises from a motor accident claim where the claimant sustained injuries due to a collision between a motorcycle and a luxury bus. The Motor Accident Claims Tribunal at Anand awarded compensation of Rs.6,82,182/- with 9% interest. The Insurance Company appealed under Section 173 of the Motor Vehicles Act, 1988, contending that the driver of the offending bus did not possess a valid transport driving licence on the date of the accident. The Insurance Company had raised this defence in its written statement (Exh. 18) and led evidence by examining an RTO officer (Exh. 57) and producing documentary evidence (Exh. 58). The evidence showed that the driver held a non-transport licence valid from 03.05.2006 to 02.05.2026, but the transport vehicle licence was valid only from 05.03.2010 to 04.03.2013. Since the accident occurred on 23.04.2013, the transport licence had expired. The Tribunal, however, did not consider this proved breach. The High Court, after hearing the appellant's counsel, found that the breach of policy condition was established. Relying on the principle of 'pay and recover', the Court held that the Insurance Company must pay the awarded compensation to the claimant but is entitled to recover the same from the owner and driver of the offending vehicle. The appeal was partly allowed, modifying the award to the extent of granting recovery rights.
Headnote
A) Motor Accident Claims - Driving Licence - Transport Vehicle - Section 149 Motor Vehicles Act, 1988 - The Insurance Company raised a defence that the driver did not hold a valid transport licence. The RTO officer deposed that the transport licence expired before the accident date. The Tribunal failed to consider this proved breach. The High Court held that the Insurance Company is liable to pay compensation to the third party but is entitled to recover the amount from the owner and driver of the offending vehicle, following the principle of 'pay and recover' (Paras 4-6).
Issue of Consideration
Whether the Insurance Company can be exonerated from liability when the driver of the offending vehicle did not possess a valid transport driving licence at the time of the accident, and if not, whether a 'pay and recover' order should be passed.
Final Decision
The appeal is partly allowed. The judgment and award of the Tribunal is modified to the extent that the Insurance Company shall pay the awarded compensation to the claimant and shall be entitled to recover the same from the owner and driver of the offending vehicle in accordance with law.
Law Points
- Motor Vehicles Act
- 1988
- Section 149
- driving licence
- transport vehicle
- pay and recover
- insurance liability
- breach of policy condition
