Case Note & Summary
The case arises from a motor accident claim filed by the legal representatives of the deceased, Hujefa Ejaj Anjum Usmani, who died in a vehicular accident on 21st July 2021. The deceased was traveling in a Skoda car when a truck driven rashly and negligently by the driver of Respondent No. 5 collided with the car, causing fatal injuries. The claimants, being the wife, daughter, and parents of the deceased, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal (MACT), Nashik. The MACT awarded a compensation of Rs. 77,27,864/- with interest at 6% per annum from the date of filing till realization. The Insurance Company, National Insurance Co. Ltd., appealed against the award, primarily contending that the driver of the offending truck did not possess a valid driving license at the time of the accident, and therefore the insurer should not be liable. The High Court examined the evidence and found that the insurer had not discharged its burden of proving that the driver lacked a valid license. The court noted that the insurer merely produced a report from the Regional Transport Office (RTO) stating that no license was found in the name of the driver, but did not examine the RTO officer or produce any other evidence to show that the owner had entrusted the vehicle to an unlicensed driver. The court held that the insurer failed to prove the breach of policy conditions, and thus the appeal was dismissed. The judgment reaffirms the principle that the burden of proof lies on the insurer to establish that the driver did not hold a valid license, and mere absence of a license at the time of accident is not sufficient to avoid liability.
Headnote
A) Motor Accident Claims - Compensation - Section 166, Motor Vehicles Act, 1988 - Death of deceased in motor vehicle accident - Claimants awarded compensation by MACT - Insurance company appealed on ground that driver had no valid license - Held that insurer failed to discharge burden of proving breach of policy condition - Appeal dismissed (Paras 1-10). B) Motor Accident Claims - Driving License - Section 149(2)(a)(ii), Motor Vehicles Act, 1988 - Insurer must prove that driver did not hold valid license - Mere absence of license at time of accident not sufficient - Insurer must show that owner entrusted vehicle to unlicensed driver - Held that insurer failed to prove breach (Paras 6-9).
Issue of Consideration
Whether the Insurance Company is liable to pay compensation when the driver of the offending vehicle did not hold a valid driving license at the time of the accident.
Final Decision
The appeal is dismissed. The impugned judgment and award dated 9th July 2024 passed by the MACT, Nashik is confirmed.
Law Points
- Burden of proof on insurer to prove breach of policy conditions
- Standard of proof for driving license validity
- No requirement for insurer to prove license was fake beyond reasonable doubt
