Case Note & Summary
The case involves an appeal filed by New India Assurance Co. Ltd. against the judgment and award dated 08.01.2015 passed by the Motor Accident Claims Tribunal (Auxiliary) at Dhrangadhra, Dist. Surendranagar in MACP No.57/2012. The Tribunal had partly allowed the claim petition and awarded Rs.6,04,000/- as compensation with interest at 9% per annum from the date of filing of the claim petition till realization. The insurance company challenged the award solely on the ground that the rider of the motorcycle involved in the accident did not hold a valid driving license, and therefore, the insurance company should have been exonerated. The High Court heard the learned counsel for the appellant, Ms. E. Shailaja, who vehemently submitted that in the absence of a license, the insurance company could not be held liable. However, the court noted that the insurance company had not examined any witness from the RTO or produced any certificate to prove its defence regarding the license. The Tribunal in paragraph 16 had observed that the insurance company failed to prove its defence and was jointly and severally liable. The High Court agreed with the Tribunal's finding, stating that it is a settled proposition of law that the insurance company must prove its defence, and in this case, it miserably failed to do so. The court found no error in the Tribunal's observation and held that the appeal was devoid of merits. Consequently, the appeal was dismissed.
Headnote
A) Motor Accident Claims - Driving License - Burden of Proof - Insurance Company's Liability - Motor Vehicles Act, 1988, Section 149(2)(a)(ii) - The insurance company appealed against the award of compensation, contending that the rider of the motorcycle did not hold a valid driving license. The court held that the insurance company failed to discharge its burden of proof as it did not examine any witness from the RTO or produce any certificate to prove the absence of a license. The Tribunal's finding that the insurance company was jointly and severally liable was upheld. (Paras 4-5) B) Motor Accident Claims - Evidence - Failure to Lead Evidence - Adverse Inference - Motor Vehicles Act, 1988, Section 149(2)(a)(ii) - The court observed that the insurance company did not lead any oral or documentary evidence on the point of driving license. In the absence of evidence, the Tribunal's conclusion that the insurance company failed to prove its defence was sustainable. The appeal was dismissed as devoid of merits. (Paras 5-6)
Issue of Consideration
Whether the insurance company can be exonerated from liability on the ground that the rider of the motorcycle did not hold a valid driving license, when the insurance company failed to adduce any evidence to prove the same.
Final Decision
The appeal stands dismissed. The impugned judgment and award of the Tribunal is upheld.
Law Points
- Burden of proof on insurance company to prove breach of policy conditions
- Insurance company must lead evidence to prove absence of valid driving license
- Failure to examine RTO witness or produce certificate results in adverse inference
