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SUPREME COURT OF INDIA
M.R. Shah, Aniruddha Bose, JJ.
The Oriental Insurance Company Ltd. – Appellant
Versus
K. Narasimha Reddy – Respondent
Civil Appeal No. 7694 of 2013
Decided On : 09-06-2022
Insurance Claim - Driving Licence - [Motor Vehicles Act, 1988, Section 130] - The court found that the Insurance Company repudiated the claim on the ground that the Driving Licence was not produced. However, the Surveyor's Report suggested that the Driving Licence was burnt in the accident, and it was beyond the control of the insured to produce the document. The court upheld the decision of the National Consumer Disputes Redressal Commission in allowing the claim.
Fact of the Case:
The Insurance Company repudiated the claim on the ground that the Driving Licence was not produced, despite the Surveyor's Report suggesting that it was burnt in the accident. The District Forum and the National Consumer Disputes Redressal Commission allowed the claim.
Finding of the Court:
The court found that no error was committed by the District Forum and the National Consumer Disputes Redressal Commission in allowing the claim, and dismissed the civil appeal.
Issues: Repudiation of claim based on non-production of Driving Licence, Surveyor's Report, Error in decision by lower forums
Ratio Decidendi: The court upheld the decision of the lower forums, considering the circumstances where the Driving Licence was burnt in the accident and beyond the control of the insured to produce the document.
Final Decision: The civil appeal was dismissed, and the decision of the National Consumer Disputes Redressal Commission was upheld.
ORDER
1. We have heard the learned counsel appearing for the respective parties.
2. From the material on record, it emerges that the Insurance Company repudiated the claim on the ground that the Driving Licence was not produced. However, it is required to be noted that there are concurrent findings and even the Surveyor's Report also suggests that the Driving Licence was burnt in the accident. Still, the Insurance Company insisted for producing the document, which was beyond the control of the insured.
3. In the above facts and circumstances of the case, we find that no error has been committed by the District Forum as well as by the National Consumer Disputes Redressal Commission [in short, 'NCDRC'] in allowing the claim.
4. We see no reason to interfere with the impugned order passed by the NCDRC. The civil appeal is, accordingly, dismissed.
5. Pending interlocutory application(s), if is/are disposed of.
The court upheld the claim based on the inability of the insured to produce the burnt Driving Licence, as it was beyond their control.
Burden of Proof – The court cannot lay down any criteria as to how said burden would be discharged, inasmuch as the same would depend upon the facts and circumstance of each case.
Insurers must verify driving licenses before issuing policies; failure to do so prevents them from repudiating claims based on license validity.
Contract of Insurance - A contract of Insurance between the concerned parties is on the principle of “Uberrima fides” i.e. absolute good faith on part of both the contracting sides.
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