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.

JUDGMENT :

J. L. Odedra, J.

1. The present Appeal arises from the judgment and award passed in MACP No.527 of 2005. The judgment and award is dated 17.04.2005 and has been passed by the learned Motor Accident Claims Tribunal (Main), Bhavnagar.

2. By way of the impugned judgment and award, the Tribunal has been pleased to award a sum of Rs.5,55,000/- with 9% rate of interest from the date of filing of the claim petition till realization,. from the opponents, jointly and severally.

3. At this juncture, the accident in question may be examined. It appears that on 21.07.2005, at about 7:00 am, minor Shilpa, the victim herein, (hereinafter be referred as “the deceased”) was going to attend a call of nature, when a truck belonging to opponent no.1, being driven by one Hanifbhai alias Jokham alias Tako, came from the opposite direction, driving it in wrong side and dashed with the minor. As a result of the accident, the minor deceased lost her life.

4. Whilst preferring the claim petition, it appears that the father of the deceased did not deem it appropriate to implead the driver. Apparently only the owner of the vehicle and the Insurance Company were impleaded as opponent nos.1 and 2, respectively.

5. In the present First Appeal, the appellant – Insurance Company is aggrieved by the fact that it has not been exonerated though the Tribunal concluded that the driver did not possess requisite valid and effective driving license, and therefore, the appellant has preferred the present First Appeal.

6. Heard learned advocates for the respective parties.

7. Learned advocate for the appellant Mr. H G Mazmudar has submitted before this Court that on perusal of the document at Exhibits-48,49 and 50, it is clear that the driver was holding license in the following manner:

1. He had held Light Motor Vehicle (Non-Transport) License from the period of 07.05.1982 till 05.04.2010.

2. Medium Goods Vehicle and Heavy Goods Vehicle License from the period of 2001 to 11.10.2004.

8. Thereafter, as per the document Exhibit-49, the driver had renewed the said license of Medium Goods Vehicle and Heavy Goods Vehicle for the period of 25.07.2005 till 24.07.2008 and thereafter, again, from 25.07.2008 to 24.07.2011. It was thus submitted that as on the date of the accident i.e., on 21.07.2005, the driver did not hold any license in respect of the Medium Goods Vehicle or Heavy Goods Vehicle. It was further submitted that yet, the driver was driving the concerned vehicle on the fateful day and had caused the accident, resulting in death of minor Shilpa. It was thus urged that this is a case where the Insurance Company should have been exonerated for the reason of breach of policy conditions. He has also submitted that the Tribunal has relied on the judgment in the case of National Insurance Company Limited Vs. Sajjan Singh reported at 2004 ACJ 1 SC. It was submitted that thereafter, the Tribunal has also noticed the judgment in the case of Oriental Insurance Company Limited Vs. Zaharulnisha and Ors. reported at AIR 2008 SC 2018, wherein the Hon’ble Supreme Court held that holding the valid and effective driving license is one of the conditions in the contract of the Insurance Policy and that driving of the vehicle without driving license is an offence.

9. It was submitted that the Tribunal has erred in holding the Insurance Company liable to indemnify the insured. It was thus submitted that looking to the peculiar facts and circumstances of the case, the appellant – Insurance Company may kindly be exonerated in the present First Appeal.

10. Learned advocate appearing for the respondent No.1 h