IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V Srinivas, J.
National Insurance Comp Ltd., - Appellant
Versus
Y Siva Parvathi Prakasam and Others - Respondents
Motor Accident Civil Miscellaneous Appeal No: 2637/2016
Decided On : 21-08-2024
Liability - Motor Vehicle Accident - Motor Vehicles Act - Sections 147, 149 - The court interpreted the liability of the insurer in the context of the rider's driving license validity, concluding that the insurer failed to prove the absence of a valid license, thus upholding the Tribunal's award of compensation.
Fact of the Case:
The appeal concerns a compensation claim following a fatal motorcycle accident involving the deceased and a motorcycle insured by the appellant. The claimants sought compensation from the rider, owner, and insurer of the motorcycle, alleging negligence.
Finding of the Court:
The court found that the Tribunal correctly determined the accident was due to the rider's negligence and that the insurer did not provide sufficient evidence to prove the rider lacked a valid driving license.
Issues: The primary issue was whether the rider of the motorcycle had a valid driving license at the time of the accident, affecting the insurer's liability for compensation.
Ratio Decidendi: The court held that the insurer's failure to substantiate claims regarding the rider's lack of a valid driving license meant the Tribunal's award of compensation was justified.
Result: The appeal was dismissed, upholding the Tribunal's award of compensation.
JUDGMENT :
V Srinivas, J.
This appeal is directed against the order of the Chairman, Motor Vehicle Accident Claims Tribunal-cum-I Additional District Judge at Ongole (hereinafter called as ‘the Tribunal’) in M.V.O.P.No.339 of 2013 dated 30.10.2015.
2. The appellant is the insurer of the motorcycle bearing No.AP-27AP/8385 (hereinafter referred to as “crime motorcycle”). The respondent Nos.1 to 3 herein are the wife, son, and daughter of Yerramsetty Venkateswarlu (hereinafter referred to as “deceased”) respectively. The respondent Nos.4 and 5 are rider and owner of the said crime motorcycle, respectively.
3. For the sake of convenience, the parties hereinafter referred to as they arrayed before the tribunal.
4. The case of the claimants, in the petition before the Tribunal is that:
ii). Being dependents, they claimed compensation of Rs.4,00,000/- against the rider, owner, and insurer of the crime motorcycle.
5. The respondent No.3/insurer filed written statement denying the averments in the petition and pleaded that the accident occurred only due to the negligence on the part of the deceased, but not due to the 1st respondent/rider of the crime motorcycle and thereby, prays to dismiss the petition.
6. The Tribunal settled the following issues for enquiry basing on the material:
2. Whether the rider of the motorcycle bearing No.AP- 27AP/8385 is having valid and effective driving license at the time of accident?
3.Whether the petition is bad for non-joinder of necessary parties?
4.Whether the petitioners are entitled for compensation? If so to what amount and against whom? and
5.To what relief the petitioners are entitled?”
7. During enquiry, on behalf of the claimants, PW.1 was examined and Exs.A.1 to A.5 were marked. On behalf of the 3rd respondent, R.Ws.1 and 2 were examined and Exs.B.1 to B.4 and X.1 were exhibited.
8. On the material, the Tribunal, having come to the conclusion that the accident occurred due to the rash and negligent driving of the crime motorcycle by its rider, held that the claimants are entitled for the compensation of Rs.6,59,000/-, with interest at 6% per annum from the date of petition till the date of realization against the respondent Nos.2 and 3, for the death of the deceased in the accident.
9. It is against the said award; the present appeal was preferred by the appellant/insurer.
10. Heard Sri Muttevi Muralikrishna, learned counsel for the appellant/insurer and Sri Ambati Sudhakara Rao, learned counsel for the respondent Nos.1 to 3/claimants.
11. Sri Muttevi Muralikrishna, learned counsel for the appellant/insurer submits that even as per Ex.A.2 charge sheet the rider of the crime motorcycle is not having valid and effective driving license to ride the same, as such, the appellant is not liable to pay any compensation to the claimants; that the Tribunal failed to consider the same and prays to allow the appeal.
12. Sri Ambati Sudhakara Rao, learned counsel for the respondent Nos.1 to 3/claimants submits that the tribunal after considering the material placed on record, rightly concluded that the claimants are entitled for compensation against the owner and insurer of the crime motorcycle and awarded compensation; that the appellant is failed to prove that the 1st respondent is not having valid and effective driving l
The insurer's liability remains intact unless it can conclusively prove the absence of a valid driving license for the rider at the time of the accident.
Insurers are liable to compensate third parties even if the driver lacks a valid license, with a right to recover from the vehicle owner, as established in prior Supreme Court rulings.
Liability of the insurance company to pay compensation to the petitioners in the first instance and recover the same from the owner of the offending vehicle.
The main legal point established is that a person holding a learner's licence is considered 'duly licensed' and the insurance company is liable to pay compensation to the claimants and later recover ....
Insurance companies are liable to pay compensation when the driver lacks a valid license, following the 'pay and recover' principle.
The grace period for driving license validity under Section 14 legitimizes liability of insurers, impacting judgments on compensation and negligence in vehicular accidents.
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