RAJASTHAN HIGH COURT
Vinit Kumar Mathur, JJ.
The Oriental Insurance Co Ltd - Appellant
Versus
Kanaram & Ors. - Respondents
Civil Misc. Appeal No. 496/2001
Decided On : 04-03-2021
Liability - Motor Accident Claims - Motor Vehicles Act - Sections 3/181, 5/180 - The court emphasized the burden of proof on the Insurance Company to demonstrate the driver's lack of a valid license, affirming the Tribunal's decision to hold the Insurance Company liable for compensation.
Fact of the Case:
The appeal was against a Tribunal's award of Rs. 2,10,000 for the death of Smt. Nenu Devi, where the Insurance Company contested liability based on the driver's licensing status at the time of the accident.
Finding of the Court:
The court upheld the Tribunal's finding that the Insurance Company failed to prove the driver lacked a valid license, thus affirming the Tribunal's decision to hold the Insurance Company liable for compensation.
Issues: Whether the Insurance Company was liable to pay compensation given the driver's alleged lack of a valid driving license at the time of the accident.
Ratio Decidendi: The court concluded that the burden of proof rested on the Insurance Company to establish that the driver was unlicensed, which they failed to do.
Result: The appeal was dismissed, affirming the Tribunal's award.
JUDGMENT
1. The present appeal has been preferred against the judgment and award dated 29/07/2000 passed by Motor Accident Claims Tribunal, Balotra (District & Sessions Judge, Balotra, District Barmer) in Civil Misc. (Claim) Case No. 5/1998. Vide judgment dated 29/07/2000, the claim petition of the claimants was decided and an amount of Rs. 2,10,000/- was awarded to the claimants on account of the death of Smt. Nenu Devi.
2. Learned Tribunal after framing the issues, evaluating the evidence brought on record and hearing learned counsel for the parties, decided the claim petition of the claimants as stated hereinabove.
3. Heard.
4. Shri UCS Singhvi, learned counsel for the appellant/Insurance Company has attacked the finding of the Tribunal recorded on issue No.3. Learned counsel submits that the Tribunal erred while recording the finding on issue No.3 as the liability has been fastened on the Insurance Company only on the ground that the Insurance Company could not discharge its burden to prove the fact that at the time of the accident, the driver of the bus was holding a requisite licence or not. Learned counsel submits that it was discussed in detail that the police after investigation has filed charge sheet under Section 3/181 of the Motor Vehicles Act, 1988 against the driver showing the fact that at the time of accident, the driver was not holding the requisite driving licence for driving the bus. He further submits that the owner of the bus was already charge-sheeted under Section 5/180 of the Motor Vehicles Act and, therefore, this clearly goes to show that the driver of the bus Prem Singh was not authorized to drive the bus at the time of accident. In these circumstances, learned Tribunal was not correct in holding the Insurance Company responsible for paying the compensation. He further submits that there was gross violation of the Insurance Policy as the bus was being driven by a person who was not holding the valid driving licence to drive the bus. Therefore, the Insurance Company cannot be burdened with the liability to pay the compensation in this case.
5. E-converso, learned counsel for the claimants submits that the finding recorded on issue No.3 is well reasoned and it was noted by the Tribunal that despite opportunity being given to the Insurance Company to discharge its burden, they failed to prove that driver of the bus Prem Singh was not holding a valid driving licence at the time of accident. He submits that neither the driver of the bus appeared before Tribunal nor any reply was filed, therefore, it cannot be said that he was not holding a valid driving licence. It was incumbent upon the Insurance Company to discharge its burden to prove before the Tribunal that the driver of the bus Prem Singh was not holding the valid licence at the time of accident. He has taken the Court to the statement of NAW. 1 Sagarmal who stated in his testimony that he did not go to the Office of the Transport Authorities to check whether any licence in the name of Prem Singh was issued or not. He, therefore, submits that the finding of fact recorded by the Tribunal does not suffer from any infirmity and no interference is called for by this Court in this case.
6. I have considered the submissions made at the Bar and have gone through the impugned judgment as well as other relevant record of the case.
7. The Tribunal dealt with the issue No.3 in detail and came to the conclusion that the burden of proof was on the Insurance Company to prove the fact that driver of the bus Prem Singh was not holding any licence, much-less valid licence at the time of the accident. The representative, who appeared before the Tribunal as NAW1 Sagarmal, also stated that he did not take the requisite steps to find out whether the driver of the bus Prem Singh was holding any valid licence at the time of accident or not. He did not make any investigation with respect to the fact that whether the driver of the bus was holding any licence or not. For brevity, t



The court established that contractual engagement with a transport corporation can negate permit requirements, and the burden of proof lies with the insurance company to demonstrate any licensing vio....
The central legal point established in the judgment is the impact of the driver's lapsed license on the liability of the Insurance Company in a motor accident claim.
The Insurance Company must prove the owner's knowledge of the driver's unlicensed status to escape liability; mere allegations are insufficient.
The burden to prove the existence of a driving license lies with the driver and owner of the vehicle. The insurer is obligated to indemnify the insured only if the terms and conditions of the insuran....
The onus of proof regarding the validity of the driving license and authorization to drive the vehicle remains with the insurance company, and the violation of insurance policy terms cannot be presum....
The insurance company must provide evidence to support its claims, and failure to do so may result in the dismissal of the appeal.
The employer's verification of a driver's license suffices unless there is reason to doubt its validity, placing the burden of proof on the insurer.
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