Motor Vehicle Accident Claim – Victim-deceased died in a vehicular accident – Truck was driven by respondent no.1 – The said truck met with an accident with a tractor-trolley – Victim was a conductor in the truck – Claim petition – Tribunal awarded compensation of Rs.3 lakhs – It was found that respondent no.1-driver was not holding a valid licence on date of the accident – The High Court enhanced the amount of compensation to Rs.5,33,600/- – While enhancing the compensation, the High Court fastened the liability to pay the amount on the respondent no.1-driver and respondent no.2owner holding that respondent no.3-Insurance Company was entitled in law to avoid the liability – Correctness: Held: The High Court in the impugned judgment relied upon the decision in Ram Babu Tiwari to find that as per the specific provisions of the Motor Vehicles Act, if the driver does not possess a valid and effective driving licence, it results in a breach of conditions of the insurance policy, exonerating the insurer from its liability – But while affirming the order of the High Court, absolving the liability for breach of conditions in the policy, this Court refused to interfere with orders of ‘pay and recover’ as directed by the High Court – In the above circumstances, going by the series of decisions of this Court, it is only proper that the insurer be directed to satisfy the award, which however can be recovered by the insurer from the insured-owner of the vehicle. [Paras 6.1, 7]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan (2007) 7 SCC 56 (2008) 7 SCC 416. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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