Case Note & Summary
The appeal arose from a motor accident claim filed by T. Vinoth Kumar, who sustained grievous injuries in a collision with a Honda Activa driven by S. Sekar. The claimant alleged that the accident occurred due to the rash and negligent driving of Sekar. He sought compensation of Rs.5,00,000 before the Motor Accident Claims Tribunal, Tiruppur, in MCOP No.675 of 2018. The first respondent remained ex parte, while the insurance company, Reliance General Insurance Co. Ltd., contested the claim on the ground that the owner-cum-driver lacked a valid driving license at the time of the accident, amounting to a fundamental breach of the insurance policy. The Tribunal, after recording evidence, concluded that the accident was caused by the negligence of the first respondent but exonerated the insurer, holding the first respondent liable to pay the quantified compensation of Rs.3,42,916. Aggrieved by the exoneration of the insurer, the claimant appealed to the High Court under Section 173 of the Motor Vehicles Act, 1988. The appellant’s counsel relied on Supreme Court decisions in *National Insurance Co. Ltd. v. Swaran Singh* and *Singh Ram v. Nirmala* to argue that the insurer could not be absolved and the principle of pay and recover should apply. The insurance company’s counsel defended the Tribunal’s order. The excerpt of the judgment provided does not include the High Court’s final analysis or decision; it ends after recording the appellant’s submissions. Therefore, the crux of the judgment, including the court’s reasoning and operative directions, is not available in the text.
Issue of Consideration
Whether the Motor Accident Claims Tribunal was justified in exonerating the insurer on the ground that the owner-cum-driver of the offending vehicle did not possess a valid driving license, and whether the insurer should be directed to pay and recover under the principle of pay and recover.
Law Points
- Liability of insurer when driver lacks valid license
- pay and recover principle
- fundamental breach of insurance policy
Case Details
2025 LawText (MAD) (03) 193
Appellant: Mr.K.Myilsamy, For R2: Mr.P.Suresh Srinivasan, For R1: Notice Dispensed With
1. S.Sekar, 2. M/s.Reliance General Insurance Company Ltd
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Motor accident compensation claim
Remedy Sought
Compensation of Rs.5,00,000 for injuries sustained in a road accident
Filing Reason
The claimant's two-wheeler was struck by the first respondent's two-wheeler, resulting in grievous injuries.
Previous Decisions
The Motor Accident Claims Tribunal, Tiruppur, in MCOP No.675 of 2018, found the first respondent negligent, exonerated the insurer due to lack of valid driving license, and awarded Rs.3,42,916 payable by the first respondent.
Issues
Whether the insurer could be exonerated from liability on the ground that the owner-cum-driver did not possess a valid driving license at the time of the accident.
Whether the principle of pay and recover as laid down in National Insurance Co. Ltd. v. Swaran Singh should be applied.
Submissions/Arguments
Appellant: argued that the insurer should not be exonerated despite the absence of a valid license, relying on Swaran Singh and Singh Ram v. Nirmala for pay and recover.
Respondent Insurance Company: contended that the lack of valid driving license constituted a fundamental breach of the insurance policy, absolving it from liability.
Judgment Excerpts
It was also claimed by the 2nd respondent that the 1st respondent/rider of the vehicle insured with it, did not posses effective driving license on the date of accident and hence, the 2nd respondent was not liable to pay compensation to the claimant.
The Tribunal held that the 1st respondent did not possess valid driving license on the date of accident and the same would amount to fundamental breach of the terms of insurance policy with the 2nd respondent-insurance company and hence, the Tribunal exonerated the 2nd respondent-insurance company from paying compensation amount.
Procedural History
The claimant filed MCOP No.675 of 2018 before the Motor Accident Claims Tribunal, Tiruppur. The Tribunal, by award dated 30.04.2024, held the first respondent negligent, exonerated the insurer, and awarded Rs.3,42,916 against the first respondent. The claimant filed C.M.A.No.413 of 2025 under Section 173 of the Motor Vehicles Act, 1988, challenging the exoneration.
Acts & Sections
- Motor Vehicles Act, 1988: 173
