Minor breaches of licensing conditions do not absolve the insurer from liability, and the burden of proof is on the insurer to establish the breach on the part of the owner in order to avoid liability.

As per Hon'ble Shri Arun Mishra, J.;-

1. In this appeal, appellant has prayed for enhancement of compensation aggrieved by award dated 28-4-2004 passed by 4th Addl. Motor Accident Claims Tribunal, Katni in MCC No. 435/2002. On account of death of Mehngu Kushwaha, died in an accident dated 19-12-2001 the claimants widow, children and his mother filed claim petition before the Claims Tribunal claiming compensation.

2. The deceased was a labourer. He was going from his house to Katni. In front of house of Shree Ram Tailer, a Truck MP 21/1062 driven by Rammu Patel dashed him. He died on the spot. Truck was owned by Sanjay Khare and insured with the National Insurance Co. Ltd. A criminal case was registered against the driver. It was claimed that age of the deceased was 40 years. He was earning a sum of Rs. 100/- per day. A sum of Rs. 15 lakhs was claimed towards compensation. The owner and driver did not file written statement. However, respondent No. 3 insurer denied the income of the deceased and contended that excessive compensation was claimed. Driver was not having valid and effective driving licence on the date of accident.

3. The Claims Tribunal has come to the conclusion that accident was outcome of rash and negligent driving of Shri Rammu Patel. At the same time, the learned Claims Tribunal came to the conclusion that original licence was forged, though it was renewed, hence insurer has been exonerated from making the payment of the amount of compensation which has been arrived at by the Claims Tribunal. The income of the deceased has been arrived at Rs. 100/- per day as deceased was a skilled mason. His monthly income has been arrived at Rs. 1800/- per month. Total compensation awarded is Rs. 2,28,000/- alongwith interest@ 9% per annum from the date of filing of the claim petition till realization. Liberty has been given to the claimant to recover the amount from the insurer. In turn the insurer has been given liberty to recover the amount from owner.

4. Shri Gopal Shrivas, learned Counsel appearing for the appellants has submitted that the compensation which has been arrived at and awarded is inadequate. There is no evidence on record to indicate that owner had the knowledge that licence held by the driver was forged, it cannot be considered the breach on the part of the owner. Thus, joint and several liability ought to have been saddled on the driver, owner and insurer to make the payment of compensation.

5. Shri Pankaj Tiwari, learned Counsel appearing for respondent Nos. 1 and 2 has submitted that owner was not having the knowledge as to the forge licence, apart from that license was not forged, thus, liability has to be saddled on the insurer.

6. Shri N.S. Ruprah with Shri Ajay Gupta, learned Counsel appearing for insurer has submitted that as the licence was forged, insurer has rightly been exonerated, no case for interference is made out.

7. The first question for consideration is whether compensation which has been awarded is adequate or not. We find that income has been assessed at Rs. 100/- per day which is reasonable in the facts and circumstances of the case. Deceased was a skilled mason, earning Rs. 100/- per day, however, based on that monthly income comes to Rs. 3000/- not Rs. 1800/- as arrived at by the Claims Tribunal, thus, we assess monthly income at Rs. 30()0/ - and Rs. 36,000/- per annum. After making 1/3rd deduction, which the deceased would have spent on himself had he been alive, loss of annual dependency comes to Rs. 24,000/-. The age of the deceased has been found to be 40 years, thus, multiplier of 16 is applicable which we apply, as the widow, children and mother are the claimant, thus total loss of dependency comes to Rs. 24,000 x 16 = Rs. 3,84,000/-. In addition, we award a sum of Rs. 15,000/- towards customary head of loss of estate, loss of funeral expenses, loss of expectancy of life. For loss of consortium, we award Rs. 5000/- to widow. Thus, total compensation comes to Rs. 3,84,00