Case Note & Summary
The appellant, owner of an autorickshaw, filed an appeal under Section 173(1) of the Motor Vehicles Act, 1988, challenging the judgment and award dated 23.6.2011 passed by the Additional MACT, Yadgir in MVC No. 233/2010, which partly allowed the claim petition and awarded compensation of Rs. 1,35,000 with interest at 6% p.a. to the first respondent (injured claimant). The accident occurred on 05.04.2010 at about 2.00 p.m. when the first respondent was proceeding in the autorickshaw bearing registration number (not mentioned). The appellant contended that the insurance company (second respondent) should be liable to pay the compensation, as the vehicle was insured with them. The insurance company argued that there was a breach of policy conditions because the driver did not have a valid driving license. The court examined the evidence and found that the insurance company failed to prove that the driver did not possess a valid driving license at the time of the accident. The court held that the burden to prove breach of policy conditions lies on the insurance company, and in the absence of such proof, the insurance company cannot avoid liability. Consequently, the court allowed the appeal, set aside the award insofar as it directed the appellant to pay compensation, and directed the insurance company to pay the entire compensation amount to the first respondent.
Headnote
A) Motor Vehicle Act - Liability of Owner and Insurer - Section 173(1) MV Act - The owner of the vehicle challenged the award directing him to pay compensation, contending that the insurance company should be liable. The court held that the insurance company failed to prove that the driver did not have a valid driving license at the time of the accident. Therefore, the insurance company is liable to pay the compensation. (Paras 1-5) B) Motor Vehicle Act - Breach of Policy Conditions - Burden of Proof - The burden to prove breach of policy conditions lies on the insurance company. In the absence of evidence, the insurance company cannot avoid liability. (Paras 3-5)
Issue of Consideration
Whether the owner of the vehicle is liable to pay compensation when the insurance company alleges breach of policy conditions due to the driver not holding a valid driving license?
Final Decision
The appeal is allowed. The judgment and award dated 23.6.2011 in MVC No. 233/2010 passed by the Additional MACT, Yadgir is set aside insofar as it directs the appellant to pay compensation. The second respondent (insurance company) is directed to pay the compensation amount of Rs. 1,35,000 with interest at 6% p.a. to the first respondent.
Law Points
- Motor Vehicle Act
- 1988
- Section 173(1)
- Liability of owner and insurer
- Breach of policy conditions
- Third party risks
