IMPORTANT POINT
Provisions of Section 149 of Motor Vehicles Act is applicable only in respect of liability of insurer to indemnify the insured against 3rd party risks.

Shri M. V. Viswanathan, Judicial Member—This appeal is preferred by the complainant in OP. No. 791/2002 against the order dated 18..12.03 of Consumer Disputes Redressal Forum, Ernakulam. The respondents herein are the New India Insurance Company, who were the opposite parties in the above said complaint in OP No. 791/2002.

2. The complainant, the owner of the motor car bearing Registration No. KL7AC 1841, was the insured and said car met with an accident on 19.3.2002. The complainant got it repaired and he claimed the expenses incurred by him for getting the said motor car repaired. But the insurer repudiated the said claim made by the complainant. They repudiated the claim on the ground of violation of one of the conditions stipulated in the insurance policy i.e., with respect of the driver’s clause. Hence the above complaint in OP No. 791/2002 was filed.

3. The lower authority namely C.D.RF, Ernakulam by the impugned order rejected the complainant’s claim and upheld the contention of the opposite parties that the insured violated the contentions stipulated in the Insurance policy by permitting the driver to drive the vehicle, which was covered under the policy, without a valid and effective driving license at the time of the accident. Hence the present appeal by the complainant.

4. The points that arised for consideration in the present appeal are:

(i) Whether the lower authority is justified in disallowing claim put forwarded by the appellant/complainant

(ii) Was there occurred any violation of the conditions stipulated in the policy of insurance issued by the opposite party in the name of the complainant.

Points 1 and 2

5. Admittedly appellant was the owner of the motor car which was insured under Ext. B 1 policy with the respondents/opposite parties. The period of the policy was from 22.1.02 to 21.2.03. The appellant’s car met with an accident on 19.3.02. There was a valid and subsisting policy in respect of the said vehicle, on the date of accident. Appellant claimed expenses incurred by him for getting the vehicle repaired. That claim was repudiated by the insurer (Opposite parties) on the ground that the driver of the motor car was not having an effective and valid driving license at the time of the accident.

6. There is no dispute regarding the fact that the validity of the license issued in the name of the driver had expired as early as on 18-8-2000 and that the same got renewed only on 25.3.2002. Ext. A 12 is copy of the driving license marked before the lower authority. It would show the above facts regarding expiry of that license and the subsequent renewal of the same on 25.3.02. It is to be noted that by the above said renewal of the license the validity period of the license did not get any retrospective effect. It means during the period from 19.8.2000 upto 24.3.2002 the above said driver Biju. K. V. had no valid and effective license to drive the motor car. If that be so, it can be concluded that the driver had no valid and effective driving license at the time of accident i.e. on 19.3.2002.

7. The learned counsel for the appellant/complainant relied on the full bench decision rendered by the Hon’ble High Court of Kerala in Oriental Insurance Company Ltd. v. Paulose, reported in 2004 (1) KLT 8 (FB). In the above said reported decision it was held that insurer cannot be absolved of the liability to indemnify the insured against 3rd party claim, merely because of the fact that the Driver’s driving license had been expired on the date of the accident, but it was renewed subsequent to the accident. A reading of the said decision rendered by the Hon’ble High Court would show that the said decision is based on the provision in Section 149(2)(a)(ii) of the Motor Vehicles Act. It reads as follows:

“149. Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks.

(1) …..

(2) No sum shall be payable by an insurer under sub-s.(l) in respect of any judgme