Case Note & Summary
The case arises from a motor accident claim filed by the widow of Hiraman Babar, who died in a vehicular accident on 24 September 2008 when an auto rickshaw hit him while he was crossing the road. The deceased was 53 years old and worked as a Peon in the Office of Tahasildar, Mulund, Mumbai, earning Rs. 11,500 per month. The claimant sought compensation of Rs. 10 lakhs. The Motor Accident Claims Tribunal, Mumbai, in M.A.C.P. No. 3229 of 2008, awarded Rs. 9,82,925 with interest at 7.5% per annum, holding the owner and insurer jointly and severally liable. The insurance company appealed, arguing that the driver did not have a valid driving licence at the time of the accident, and thus the insurer should not be liable. The High Court examined the evidence, including the driving licence record from the Regional Transport Office, which showed that the licence was issued after the accident date. The court noted that the driver had no valid licence on the accident date, which is a breach of policy conditions. However, following the principle of 'pay and recover' established in Supreme Court precedents, the court held that the insurer is liable to pay compensation to the third party claimant and can recover the amount from the owner. The appeal was dismissed, and the insurer was directed to pay the awarded amount and then recover it from the owner in the same proceedings.
Headnote
A) Motor Accident Claims - Third Party Rights - Pay and Recover - Section 166, Section 149 Motor Vehicles Act, 1988 - The issue was whether the insurer is liable to pay compensation to a third party when the driver had no valid driving licence. The court held that the insurer is liable to pay compensation to the third party and can recover the amount from the owner of the vehicle, following the principle of 'pay and recover' laid down in various Supreme Court judgments. (Paras 1-10) B) Motor Accident Claims - Driving Licence - Invalid Licence - Breach of Policy Condition - Section 149(2)(a)(ii) Motor Vehicles Act, 1988 - The court found that the driver did not possess a valid driving licence at the time of the accident, which is a breach of policy conditions. However, the insurer is still liable to pay compensation to the third party and can recover the amount from the owner. (Paras 5-8)
Issue of Consideration
Whether the insurance company is liable to pay compensation to a third party when the driver of the offending vehicle did not possess a valid driving licence at the time of the accident, and whether the insurer can be directed to pay and recover the amount from the owner.
Final Decision
The appeal is dismissed. The insurance company is directed to pay the awarded amount to the claimant and recover the same from the owner of the offending vehicle in the same proceedings.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Section 149
- pay and recover
- third party rights
- driving licence validity
- insurer's liability
