Case Note & Summary
The appeal was filed by the United India Insurance Company Limited challenging the judgment and award dated 12.09.2006 passed by the I Addl. Civil Judge (Sr.Dn) & CJM & Addl. MACT, Dharwad in MVC No.313/2003, whereby the Tribunal awarded compensation of Rs.1,85,000/- with interest at 8% per annum to the claimants (legal representatives of the deceased Mallappa Basappa Indur) for the death of Mallappa in a motor vehicle accident. The Insurance Company contended that the driver of the offending mini bus did not possess a valid driving licence at the time of the accident, and therefore, there was a breach of the policy condition, absolving the insurer of liability. The court heard arguments from Sri.S.C.Jainar for the appellant and Sri.J.S.Shetty for the respondents. The court examined the evidence on record, including the driving licence extract produced by the Insurance Company. The court held that the burden of proof under Section 149(2) of the Motor Vehicles Act, 1988 lies on the insurer to establish that the driver was not duly licensed. The Insurance Company failed to produce any evidence to show that the driver was disqualified from holding a driving licence or that the licence was fake. Mere production of a driving licence extract without further proof of disqualification does not discharge the burden. Consequently, the court dismissed the appeal, upholding the Tribunal's award and confirming the liability of the Insurance Company to pay the compensation.
Headnote
A) Motor Vehicles Act - Insurance - Liability of Insurer - Breach of Policy Condition - Section 149(2) of Motor Vehicles Act, 1988 - The insurer must prove that the driver did not have a valid driving licence to avoid liability. In the absence of such proof, the insurer is liable to pay compensation. (Paras 2-3) B) Motor Vehicles Act - Evidence - Burden of Proof - Section 149(2) of Motor Vehicles Act, 1988 - The burden is on the insurer to show that the driver was not duly licensed. Mere production of a driving licence extract without evidence of disqualification does not discharge this burden. (Paras 2-3)
Issue of Consideration
Whether the Insurance Company is liable to pay compensation when it failed to prove that the driver of the offending vehicle did not hold a valid driving licence at the time of the accident.
Final Decision
Appeal dismissed. The judgment and award dated 12.09.2006 passed in MVC 313/2003 by the I Addl. Civil Judge (Sr.Dn) & CJM & Addl. MACT, Dharwad is confirmed. The Insurance Company is liable to pay the compensation.
Law Points
- Burden of proof on insurer to establish breach of policy condition
- Section 149(2) Motor Vehicles Act
- 1988
- valid driving licence
- absence of evidence of disqualification
