Case Note & Summary
The case arises from a motor accident that occurred on 02.01.2015 when the original claimant, Sanjaybhai Vallabhbhai Mistri, was riding his motorcycle and was hit by a bus driven by respondent no.1, Vinod Rajpat Chauhan, owned by respondent no.2, and insured by the appellant, HDFC ERGO General Insurance Company Limited. The claimant sustained serious injuries and filed a claim petition seeking Rs.18,00,000/- compensation. The Motor Accident Claims Tribunal partly allowed the claim and awarded Rs.5,33,150/- with 9% interest. The insurance company appealed, arguing that the driver did not hold a valid driving license and that the license was fake. The insurance company examined an officer who testified that the license was fake based on information from the RTO, Bulandshahar. The court noted that the insurance company failed to examine the owner of the vehicle to prove that the owner had knowledge of the fake license or failed to exercise due diligence. The court held that the insurance company must prove breach of policy condition by the owner, and since it did not, the insurance company is liable to pay compensation. The court also upheld the quantum of compensation as just and reasonable. The appeal was dismissed.
Headnote
A) Motor Accident Claims - Fake Driving License - Insurance Company Liability - Section 149(2)(a)(ii) Motor Vehicles Act, 1988 - The insurance company sought to avoid liability on the ground that the driver's license was fake. The court held that the insurance company must prove that the owner had knowledge of the fake license or failed to exercise due diligence. Since the owner was not examined and the insurance company did not establish any collusion or negligence, the insurance company is liable to pay compensation. (Paras 6-8) B) Motor Accident Claims - Quantum of Compensation - Permanent Disability - Sections 166, 168 Motor Vehicles Act, 1988 - The claimant sustained injuries resulting in 30% permanent disability. The Tribunal awarded Rs.5,33,150/- including medical expenses, pain and suffering, loss of income, and future loss. The court upheld the quantum as just and reasonable. (Paras 9-10)
Issue of Consideration
Whether the insurance company is entitled to avoid liability on the ground that the driver of the offending vehicle was holding a fake driving license, and whether the owner of the vehicle exercised due diligence in verifying the license.
Final Decision
The appeal is dismissed. The judgment and award dated 30.07.2020 passed by the Motor Accident Claims Tribunal (Auxiliary-II), Ahmedabad (Rural) in MACP No.152/2015 is upheld. The insurance company is directed to pay the awarded amount with interest.
Law Points
- Motor Accident Claims
- Fake Driving License
- Insurance Company Liability
- Breach of Policy Condition
- Owner's Due Diligence
