Case Note & Summary
The case involves an appeal filed by United India Insurance Co. Ltd. against the judgment and award dated 26.08.2009 passed by the Additional District and Sessions Judge, Chitradurga, in MVC No.1371/1995, awarding compensation of Rs.3,08,000/- with interest at 6% p.a. to the claimants (respondents 1-5), who are the legal representatives of the deceased Dyamappa, who died in a motor vehicle accident involving a lorry bearing No.MP-23/D-2941. The appellant Insurance Company contended that the driver of the lorry did not possess a valid driving license at the time of the accident, which amounted to a breach of policy conditions, and therefore the insurer should not be held liable. The court examined the evidence on record, including the deposition of the driver (respondent No.6) who stated that he had a driving license but it was lost, and the insurer did not produce any documentary evidence to prove that the license was fake or invalid. The court also noted that the owner of the vehicle (respondent No.7) did not contest the claim. The court held that the burden of proving breach of policy conditions lies on the insurer, and in the absence of sufficient evidence, the insurer cannot avoid liability. The appeal was dismissed, and the award of the Tribunal was confirmed.
Headnote
A) Motor Accident Claims - Insurance Liability - Breach of Policy Conditions - Section 173(1) Motor Vehicles Act, 1988 - The Insurance Company appealed against the award of compensation, contending that the driver of the offending vehicle did not possess a valid driving license, constituting a breach of policy conditions. The court held that the insurer failed to prove the breach by adducing sufficient evidence, and thus the liability to pay compensation remains with the insurer. (Paras 1-10)
Issue of Consideration
Whether the Insurance Company can avoid liability on the ground of breach of policy conditions when the driver did not possess a valid driving license at the time of accident.
Final Decision
The appeal is dismissed. The judgment and award dated 26.08.2009 passed in MVC No.1371/1995 by the Additional District and Sessions Judge, Chitradurga, is confirmed. No order as to costs.
Law Points
- Motor Accident Claims
- Insurance Liability
- Breach of Policy Conditions
- Burden of Proof
- Section 173(1) MV Act
Case Details
2021 LawText (KAR) (06) 48
Sri A.N. Krishna Swamy (for appellant), Sri Mahesh R. Uppin (for R-1), Sri H. Ashok Kumar (for R-4), Sri B.M. Siddappa (for R-5), Sri N. Praveen Kumar (for R-10)
United India Insurance Co. Ltd.
Smt. Susheelamma and Others
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Nature of Litigation
Appeal against award of compensation in motor accident claim
Remedy Sought
Insurance Company sought to avoid liability for compensation on ground of breach of policy conditions
Filing Reason
Insurance Company challenged the award on the ground that the driver did not have a valid driving license
Previous Decisions
Tribunal awarded compensation of Rs.3,08,000/- with interest at 6% p.a.
Issues
Whether the Insurance Company can avoid liability on the ground of breach of policy conditions when the driver did not possess a valid driving license at the time of accident.
Submissions/Arguments
Appellant (Insurance Company) argued that the driver of the offending vehicle did not possess a valid driving license, which is a breach of policy conditions, and therefore the insurer is not liable to pay compensation.
Respondents (claimants) contended that the insurer failed to prove the breach and that the driver had a license which was lost.
Ratio Decidendi
The burden of proving breach of policy conditions lies on the insurer. Mere allegation that the driver did not have a valid driving license is insufficient; the insurer must adduce cogent evidence to prove the breach. In the absence of such evidence, the insurer is liable to pay compensation.
Judgment Excerpts
This appeal is filed by the Insurance Company challenging the judgment and award dated 26.08.2009 passed in MVC No.1371/1995 on the file of the Additional District and Sessions Judge, Chitradurga, awarding compensation of Rs.3,08,000/- with interest at 6% p.a.
Procedural History
The claimants filed MVC No.1371/1995 before the Additional District and Sessions Judge, Chitradurga, seeking compensation for the death of Dyamappa in a motor vehicle accident. The Tribunal awarded compensation of Rs.3,08,000/- with interest at 6% p.a. The Insurance Company appealed against this award before the High Court of Karnataka in M.F.A.No.8329/2009. The appeal was heard and reserved for judgment on 10.06.2021, and the judgment was pronounced on 28.06.2021.
Acts & Sections
- Motor Vehicles Act, 1988: 173(1)
