Back
IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
AMITENDRA KISHORE PRASAD
Branch Manager National Insurance Company Limited – Appellant
Versus
Mukesh Kumar Bhandari S/o Ramadhar Bhandari – Respondent
JUDGMENT :
AMITENDRA KISHORE PRASAD, J.
1. Since all these appeals arise out of the same accident, they have been clubbed together, heard together and decided by this common judgment.
2. Challenge in these appeals is to the awards dated 19.06.2018 and 26.06.2018, respectively passed by the learned Motor Accident Claims Tribunal, Balod, District Balod (C.G.) (hereinafter referred to as 'Claims Tribunal') in Claim Case Nos. 78/2016 and 79/2016, respectively whereby learned Claims Tribunal allowed claim application in part of the injured claimants.
3. MAC Nos. 1957/2018 and 1901/2018 have been preferred by the Insurance Company assailing the finding of the learned Claims Tribunal, whereby despite holding that there was a breach of policy conditions on the part of the owner and driver of the offending vehicle and fastening liability upon them, the Tribunal has directed the Insurance Company to satisfy the award in the first instance with liberty to recover the same from the owner of the offending vehicle.
4. MAC Nos.1518/2018 and 1520/2018 have been preferred by the owner of the offending vehicle questioning the impugned awards on the ground that the learned Claims Tribunal has erroneously
The insurance company is exonerated from liability for compensation as the driver lacked a valid driving license, establishing a breach of policy conditions.
Section 149(2) deals with insurer's right to defend an action on account of breach of policy condition.
An insurance policy breach due to vehicle unfitness does not exempt the insurer from compensating victims; they may recover from the owner after payment, affirming the principle of 'pay and recover'.
Insurance companies cannot evade liability for third-party claims solely due to a driver’s lack of valid license; they must prove the owner's negligence to avoid statutory obligations.
Insurance companies remain liable for compensation to third parties despite the driver's invalid license unless there is a fundamental breach of terms.
A valid light motor vehicle license includes transport vehicles, and insurers cannot deny liability without proving negligence by the vehicle owner.
The main legal point established in the judgment is the principle of 'pay and recover' in case of third-party risks and the requirement for the insurer to prove the driver's lack of a valid driving l....
The insurer must prove that the insured's breach of policy conditions is willful to avoid liability, even if the driver holds a fake license.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
