KOSHY, J.:-

Can insurance company be exonerated from liability to pay compensation merely because driver who was driving a commercial vehicle was not having a badge? Learned single Judge noticed two divergent views expressed by a Division Bench of this Court. Hence, the matter was referred to the Division Bench. In Govindakutty Nair v. Gopalakrishnan (2000 (1) KLT 224) : (2000 AIHC 575) a Division Bench of this Court held that requirement of driver's badge is necessary to drive a transport vehicle and if the driver is not having a badge at the time of accident, insurance company is exonerated from liability. The Division Bench referred to the decision of the Apex Court in United India Insurance Company Limited v. Gian Chand and others (AIR 1997 SC 3824) and Rukmani and others v. New India Assurance Company and others (JT 1998 (7) SC 473) : (1999 AIR SCW 4712). Another Division Bench of this Court in Ramachandran v. Unnikrishnan (2006 (2) KLT SN 15, Case No. 20), held that mere absence of a badge to drive a commercial vehicle is not sufficient, but, it must be proved that it was the reason for the accident and then only insurance company can get exonerated from the liabilit