Case Note & Summary
This batch of seven first appeals arose from a single motor vehicle accident that occurred on 28 May 2015, involving a truck bearing registration No. MH 20 BT 3578 owned by Mujeeb Khan Aref Khan and insured with the New Indian Insurance Company Ltd. The driver, Sudhakar Vishwanath Bankar, was at the wheel at the relevant time. The accident resulted in the death of Rambhau Anjaan and injuries to six other persons. The legal representatives of the deceased (Archana Wd/o Rambhau Anjaan and others) and the injured persons (Limbarao Gadade, Ramraja Bodhle, Mangal Kale, Govind Devkate, Vishnu Sultane, and Liladhar Badgujar) filed separate claim petitions before the Motor Accident Claims Tribunal at Aurangabad. The Tribunal adjudicated each petition separately and awarded compensation, with amounts ranging from Rs. 49,000 to Rs. 52,66,672 along with interest at 9% per annum from the date of claim. The insurance company resisted all claims on the primary ground that the policy conditions had been breached. It contended that the owner had committed a willful breach by permitting Sudhakar Vishwanath Bankar to drive the truck despite knowing that he did not hold a valid and effective driving licence on the date of the accident. This defense was raised in the written statements filed in all seven claim petitions. To substantiate this, the insurer examined a Junior Clerk from the Regional Transport Office at Aurangabad, Milind Sasane, who certified that no driving licence existed for the driver on the accident date. The owner and driver filed a joint written statement denying the allegations but did not lead any evidence or cross-examine the witnesses. In the appeal, the insurance company's counsel assailed the Tribunal's awards, arguing that the Tribunal failed to properly appreciate the evidence of the RTO witness and the well-established defense of breach of policy conditions. The counsel submitted that the owner’s knowledge of the driver’s lack of licence was demonstrated, and thus the insurer should be exonerated from liability. The High Court reserved judgment on 4 October 2018 and pronounced it on 19 October 2018. The available text, however, does not include the final decision and reasoning of the court.
Headnote
A) Motor Accident Claims - Insurance Defenses - Breach of Policy - Motor Vehicles Act, 1988 - The insurer raised a statutory defense that the owner knowingly permitted a driver not holding a valid driving licence, thereby breaching the policy conditions. Evidence of an RTO official was led to substantiate the absence of a licence on the date of the accident. The insurer contended that it was consequently not liable to indemnify. (Paras 3, 8-9) B) Evidence - Proof of No Driving Licence - The insurer examined Milind Sasane, Junior Clerk from RTO, Aurangabad, who certified that the driver, Sudhakar Vishwanath Bankar, did not hold any driving licence on the material date. This evidence was crucial to the insurer's defense. (Paras 10-11)
Issue of Consideration
Whether the insurer is liable to indemnify the insured when the owner committed willful breach by allowing a person without a valid driving licence to drive the insured vehicle.
Law Points
- defense of breach of policy conditions
- requirement of valid driving licence
- willful breach by owner
- insurance company's burden to prove breach
- evidence of RTO official
- insurer's liability under Motor Vehicles Act
