Point of Law : Insurance company shall be liable to pay the awarded compensation to the claimants and entitled to recover the same from the driver and owner of the vehicle. The awarded amount has been deposited by the appellant- Insurance Company.

JUDGMENT :

Learned Motor Accident Claims Tribunal awarded Rs.12,12,400/- to the claimants alongwith 9% interest per annum from the date of filing of petition till its deposit. Liability to pay the compensation was fastened on the appellant, being insurer and indemnifier of respondent No.5–the registered owner of the vehicle. The insurer has taken exception to the award in the instant appeal. Though many grounds have been taken in the memo of appeal, but during hearing, learned counsel confined his submissions only on following three points for challenging the impugned award:-

i) Driver of the offending vehicle did not possess a valid driving license.

(ii) Deceased was a gratuitous passenger in the goods vehicle.

(iii) The compensation has been assessed on the higher side.

The above points are being separately discussed hereinafter.

2. Driving License Learned counsel for the appellant/insurer argued that driving license of the driver was fake. The deposition of Aman Deep Sharma (RW-1) proved fakeness of the driving license. He had stated having checked the status of the driving license on the website of concerned Registering and Licensing Authority. The downloaded copy of the documents Ext. RW1/D and endorsement made thereon as RW1/E prove the assertion of the appellant that driving license Ext. R-1 was fake.

The plea that driving license of the driver of offending vehicle was fake is not supported by the evidence. The onus to prove this issue was on the Insurer/appellant. Aman Deep Sharma (RW1) as per his statement had only checked the status of driving license on the website of the concerned Registering & Licensing Authority. It was for the insurer to produce evidence from the concerned Authority. No witness was examined by the Insurer to prove alleged fakeness of the driving license. Documents downloaded from the website, i.e. Ext. RW1/D and Ext. RW1/E-the endorsement thereupon, are not admissible. Merely on the strength of these downloaded documents, the driving license, Ext. R-1, cannot be held to be fake. It is also well settled that fake license in itself is not sufficient to exonerate the insurance company unless it is proved on the record that the owner of the vehicle knew that the license was fake and despite this knowledge, he permitted the driver to drive the vehicle. Such evidence is not available in the present case. Therefore, plea of the insurer is rejected. Point is answered accordingly.

3. Gratuitous passenger

3(a). Learned counsel for the appellant next contended that the deceased was travelling as a gratuitous passenger in a goods vehicle. He was travelling unauthorizedly in violation of terms of Insurance Policy. Appellant-insurance company is, therefore, not liable to pay any compensation to the claimants.

3(b). Section 147 of the Motor Vehicles Act, 1988 falling under Chapter XI ‘Insurance of Motor Vehicles Against Third Party Risks’ lays down requirements of policies and limits of liability. Provisions of Section 147(1)(a) and (b) read as under:-

“147. Requirement of policies and limits of liability.-

(1) In order to comply with the requirements of this Chapter, a policy of insurance must be a policy which-

(a) is issued by a person who is an authorised insurer; and

(b) insures the person or classes of persons specified in the policy to the extent specified in sub-section (2)-

(i) against any liability which may be incurred by him in respect of the death of or bodily injury to any person including owner of the goods or his authorised representative carried in the motor vehicle or damage to any property of a third party caused by or arising out of the use of the motor vehicle in a public place;

(ii) against the death of or bodily injury to any passenger of a transport vehicle, except gratuitous passengers of a goods vehicle, caused by or arising out of the use of the motor vehicle in a public place.

Explanation.- For the removal of doubts, it is hereby clarified that the death of or bodily injury to any person or damage