Case Note & Summary
The case involves two appeals filed by the National Insurance Co. Ltd. challenging the judgment and award dated 16.11.2009 passed by the Presiding Officer, Fast Track Court, MACT, Kundapura, in MVC Nos.290/2004 and 291/2004. The Tribunal had awarded compensation of Rs.31,200/- and Rs.4,48,900/- respectively with interest at 6% p.a. from the date of suit till realization. The Insurance Company contended that the driver of the offending vehicle did not hold a valid driving licence at the time of the accident, and therefore, the insurer was not liable to pay compensation. The court examined the evidence on record and noted that the insurer had not produced any material to prove that the driver was not duly licensed. The burden of proof under Section 149(2) of the Motor Vehicles Act, 1988 lies on the insurer to establish a breach of policy conditions. Since the insurer failed to discharge this burden, the appeals were dismissed. The court upheld the awards passed by the Tribunal.
Headnote
A) Motor Vehicles Act - Insurance - Breach of Policy Conditions - Section 149(2) Motor Vehicles Act, 1988 - The insurer sought to avoid liability alleging that the driver did not hold a valid driving licence. The court held that the burden of proving breach of policy conditions lies on the insurer. The insurer failed to produce any evidence to show that the driver was not duly licensed. The appeal was dismissed. (Paras 1-10) B) Motor Vehicles Act - Compensation - Quantum - Sections 166, 168 Motor Vehicles Act, 1988 - The Tribunal awarded compensation of Rs.31,200/- and Rs.4,48,900/- in two claim petitions. The insurer challenged only the liability aspect, not the quantum. The court upheld the awards. (Paras 1-10)
Issue of Consideration
Whether the Insurance Company is entitled to avoid liability on the ground that the driver of the offending vehicle did not hold a valid driving licence at the time of the accident.
Final Decision
Both appeals are dismissed. The judgment and award dated 16.11.2009 passed in MVC Nos.290/2004 and 291/2004 by the Presiding Officer, Fast Track Court, MACT, Kundapura, are confirmed.
Law Points
- Burden of proof on insurer to establish breach of policy conditions
- Insurer must prove that driver did not hold valid driving licence
- Section 149(2) Motor Vehicles Act
- 1988
- No strict liability on owner if licence is fake without knowledge
