Case Note & Summary
The appeal was filed by the National Insurance Co. Ltd. challenging the judgment and award dated 1.6.2015 passed by the Motor Accident Claims Tribunal No.VI, Vijaypur in MVC No.209/2013. The claimants, parents of the deceased Vikas, sought compensation for his death in a motor accident that occurred on 15.8.2012 when Vikas was riding a motorcycle bearing No.KA-28/EA.5481, which skidded and fell, causing fatal injuries. The Tribunal awarded compensation of Rs. 5,00,000 with interest, holding the insurer liable. The insurer appealed, contending that the deceased was the owner of the motorcycle and did not possess a valid driving licence, and that the insurance policy excluded the liability of the owner. The High Court examined the policy terms and found that the policy specifically excluded the liability of the owner. The court also noted that the deceased did not have a valid driving licence. Relying on Section 149 of the Motor Vehicles Act, 1988, the court held that the insurer is not liable to pay compensation when the vehicle was driven by a person without a valid licence, especially when the policy excludes the owner's liability. The court allowed the appeal, setting aside the award against the insurer, and directed the claimants to recover the compensation from the owner of the vehicle, if any.
Headnote
A) Motor Accident Claims - Insurance Policy Exclusion - Owner-Driven Vehicle - The insurer is not liable to pay compensation where the deceased, being the owner and driver of the motorcycle, did not hold a valid driving licence and the insurance policy specifically excluded the liability of the owner. The Tribunal erred in fastening liability on the insurer despite the policy exclusion and lack of licence. (Paras 1-10) B) Motor Vehicles Act, 1988 - Section 149 - Defence of Insurer - The insurer can avoid liability if the insured vehicle was driven by a person without a valid driving licence, especially when the policy excludes the owner's liability. The burden is on the claimant to prove that the driver had a valid licence. (Paras 5-8) C) Motor Accident Claims - Compensation - Parents of Deceased - The parents of the deceased, who were not dependents, are entitled to compensation under the Motor Vehicles Act, but the insurer's liability is subject to policy terms and conditions. (Paras 3-4)
Issue of Consideration
Whether the insurer is liable to pay compensation when the deceased, who was the owner and driver of the vehicle, did not possess a valid driving licence and the insurance policy excluded the liability of the owner.
Final Decision
The appeal is allowed. The impugned judgment and award dated 01.06.2015 in MVC No.209/2013 passed by the Motor Accident Claims Tribunal No.VI, Vijaypur is set aside. The claimants are at liberty to recover the compensation from the owner of the vehicle, if any.
Law Points
- Motor Accident Claims
- Insurance Policy Exclusion
- Owner-Driven Vehicle
- Driving Licence
- Liability of Insurer
- Section 149 Motor Vehicles Act
- 1988
