Absence of a valid fitness certificate for a vehicle constitutes a fundamental breach of the insurance policy, thereby impacting liability and compensation assessment.

ORDER :

LALITHA KANNEGANTI, J.

Aggrieved by the award passed in MVC.No.1681/2017 dated 29.08.2019 by the Addl. Senior Civil Judge, Srirangapatna, the Insurance Company as well as the claimants are before this Court. The Insurance Company’s appeal is MFA. No.501/2021 and the claimants’ appeal is MFA.No.2222/2021. The claim petition is filed by the parents of the deceased seeking compensation of an amount of Rs.25,50,000/- for the death of the deceased.

2. It is the case of the claimants that on 19.04.2017 at about 12.30 pm., on KRS-Mysuru road, in front of MMK Hotel, K.R. Sagara Village, Srirangapatna, when deceased along with his friends was proceeding on a bike as a pillion rider, the driver of Tipper lorry drove it in high speed in a rash and negligent manner and dashed to the bike and as a result of which the deceased fell down and sustained injuries on his head and other parts of the body. Immediately after the accident he was shifted to K.R. Hospital, Mysuru. But on the same day on 3.00 pm., he succumbed to injuries while taking treatment. Basing on the evidence, the Tribunal had awarded the compensation as per the table given below:

3. Learned counsel appearing for the Insurance Company submits that the Tribunal had fixed a liability on the Insurance Company. It is the case of the Insurance Company that there is no valid permit, no driving license and also the vehicle was not having the fitness certificate. In support of their case, they have examined the RTO officer and in the evidence, it is elicited that the fitness certificate is not there and the document is also marked before the Tribunal, but the Tribunal had failed to consider all these aspects and fastened the liability on the Insurance Company. It is submitted that the Tribunal had taken the rate of interest at 9%, it should be reduced to 6% per annum.

4. Learned counsel appearing to the claimants submits that the accident had taken place in the year 2017, the Tribunal had taken the income at Rs.7,000/- per month and granted the compensation of an amount of Rs.11,68,400/- which is not a just and reasonable compensation and that needs to be enhanced.

5. Having heard the learned counsels on either side, perused the material on record. The first contention of the Insurance Company with regard to the driving licence, permit and the fitness certificate, as far as the first two issues are concerned i.e., the driving licence and the permit, no satisfactory evidence is adduced before the Tribunal. Then the third is with regard to the fitness certificate. There is evidence on record to show that there is no fitness certificate to the vehicle as on the date of the accident. When once there is no fitness certificate, it amounts to fundamental breach of the policy. Learned counsel appearing for the Insurance Company had relied on the judgment of the Kerala High Court Full Bench in the case of Pareed Pillai vs. Oriental Insurance Company Ltd. , [(2019) AIR (Kerala) 9] He had relied on paragraph Nos.15, 17 and 21 which reads thus:

“15. As mentioned above, fitness of a vehicle, to be used as a transport vehicle, is of paramount importance. The necessity to have 'Fitness Certificate' is prescribed under Section 56 of the Act. Sub- section (1) of Section 56 clearly stipulates that, a transport vehicle [subject to the provisions of Section 59 (power to fix the age limit of motor vehicle) and Section 60