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2025 Supreme(Kar) 1364

IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
Ashok S. Kinagi, J.
Divisional Managaer, Oriental Insurance Com. Ltd. - Appellant
Versus
Smt. Iravva Nigappa Bajanavar, And Ors. - Respondents
Miscellaneous First Appeal No. 23436 of 2013 (WC)
Decided On : 02-09-2025

Advocates Appeared:
For the Appellant : Sri. S.V. Yaji, Adv.
For the Respondent: Smt. Shaila Bellikatti, Adv., Sri. Sanjay S. Katageri

The employer's responsibility to ensure a valid driving license for the vehicle operator is critical; a lack of such validation can relieve the insurer from liability under the insurance policy.

Headnote:(A) Workmen’s Compensation Act, 1923 - Section 22 - Insurance Policy - Liability of insurer - Liability of insurance company in paying compensation denied on grounds of no valid driving license of the driver at the time of accident, leading to a breach of policy conditions - Commissioner dismissed the application against insurer and assessed compensation for dependents based on statutory guidelines. (Paras 1, 2, 8, 26)

(B) Employer's Responsibility - The employer’s duty to ensure valid licensing for drivers was reiterated, highlighting the necessity for compliance with licensing regulations, and failure can absolve insurers from liability. (Paras 22, 24)

Facts of the case:
The appeal was against a compensation award to the dependents of the deceased, who died in a vehicular accident while working as a Coolie, alleging negligence by the driver. The insurance company claimed breach of policy based on the lack of a valid license for the driver.

Findings of Court:
Accident occurred in course of employment, but insurer’s liability is negated due to lack of valid driving license as of the accident date. The claim for compensation is directed towards the owner of the vehicle.

Issues: Whether the Commissioner was justified in holding the insurer liable despite violations of the insurance policy and whether the deceased’s wages were accurately determined.

Ratio Decidendi: The court clarified that the responsibility of verifying a driver's license lies with the employer and if violated, the insurance company can deny liability. Therefore, the presumption of the driver's previous learners license lacked substantiation, making the insurance company not liable.

Result: Appeal allowed in part; claim petition against the insurance company dismissed.

Table of Content
1. factual background regarding the claim for compensation. (Para 2 , 3 , 4)
2. arguments presented by the parties regarding the liability. (Para 5 , 11 , 12 , 13)
3. court's observations on the evidence and liabilities. (Para 8 , 15 , 18 , 19 , 21 , 24)
4. legal reasoning concerning driving license issues and compensation assessment. (Para 20 , 22 , 26 , 28)
5. final order regarding the appeal and payments. (Para 29)

JUDGMENT :

Ashok S. Kinagi, J.

This Miscellaneous First Appeal is filed by the Insurance Company, challenging the Judgment and Award dated 05.07.2013 in WCA/SR-213/2009 passed by the Labour Officer and The Commissioner for Workmen Compensation, Sub Division-II, Belagavi, regarding the liability ( hereinafter referred to as “ the Commissioner”)

2. Brief facts, leading rise to the filing of this appeal are as follows:

3. The claimants have filed the petition before the Labour Officer and the Commissioner for Workmen Compensation seeking a compensation of Rs. 600,000/- with interest at the rate of 18%, under section 22 of the Workmen compensation Act, 1923. It is contended that, the claimants are dependants of the deceased Ningappa Fakkirappa Bhajanavar. It is contended that, the deceased Ningappa was working as a Coolie under Respondent No. 6 herein/ Employer in a Tractor bearing Reg. No. KA-24/T-71 and Trailer No. CTW-9812. On, 09-06-2009 when the deceased was proceeding in the Tractor from Gilihosur Village, Gokak, by looking Eucalyptus Tree and on 10-06- 2009 when they came near Madamgeri village, the Driver of the said Vehicle drove the vehicle in a rash and negligent manner to endanger the human life and as a result caused accident near Madamgeri cross. As a result, the deceased Ningappa sustained grivious injuries and succumbed to the injuries at the spot. It is contended that the deceased was aged about 30 years and used to earn Rs. 125 per day as daily wage from Respondent No. 1/ Employer. It is contended that the accident occurred during the course of the employment and accordingly, prays to award the compensation.

4. A notice was served on Respondent No. 1/Employer. Despite the service of notice, Respondent No. 1/ employer before the Commissioner remained absent and was placed exparte.

5. The Insurance Company filed statement of objections denying the averments made in the claim petition. It is contended that, the vehicle involved in the accident is made for agricultural purpose and insured under Kissan Package Policy. The deceased is the gratitious passenger. There is a violation of the terms and conditions of the policy. It is contended that the driver was not possessing a valid and effective license as of the date of the accident. Accordingly, prays to dismiss the claim petition.

6. The Commissioner, based on the pleadings of the parties, framed the relevant issues.

7. The claimants, to substantiate their claim, claimant No. 1 was examined as PW1 and 6 documents were marked as Ex.P1 to Ex.P6. Conversely, an official of Insurance Company was examined as RW1 and 4 documents were marked as RW 2-1 to RW 2-4.

8. The Commissioner, after assessing the verbal and documentary evidence, awarded the compensation of Rs. 3,63,965.00 and directed to pay the interest at the rate of 12% after 30 days from the date of Judgment till the same is deposited with the Commissioner. The Commissioner also directed the Insurance Company to deposit the compensation amount within a period of 30 days, before the commissioner.

9. The Insurance Company/ Respondent No. 2 before the commissioner, aggrieved by the Judgment and Award passed in WCA/SR-213/2009 dated 05.07.2013 filed this Appeal.

10. Heard the arguments of the learned counsel for the Insurance company, learned counsel for the claimants and the learned counsel for the Owner of the vehicle/Employer.

11. Learned counsel for the Insurance Company submits that the said Tractor was insured under the Kissan Package Policy and was made for the Agricultural purpose only. He submits

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