The owner is not required to conduct a full inquiry into the validity of the driver's license, and the onus is on the insurance company to prove negligence.

1. Respondent-Hardeep Singh (complainant) is the owner of Bus No.JK02-E-4285. He got his Bus insured with the New India Assurance Co. Ltd. Divisional Office, Gandhi Nagar, Jammu, (hereinafter for short called the Insurance Company) for sum of Rs.5.50.000/- with effect from 17-04-1996 to 16-04-1997. The Bus met with an accident at Kalakot. District Rajouri on 06-01-1997 and the case to this effect was registered with Police Station, Kalakot. Thereafter respondent-Hardeep Singh put up his claim with the Insurance Company. The Surveyor assessed the damages. Petitioner-Insurance Company did not settle the claim of the respondent-Hardeep Singh on the plea that the Driving Licence of the Driver of the offending Bus was not valid.

2. However, respondent-Hardeep Singh (complainant) filed a complaint before the learned Divisional Forum, Jammu, under section 10 of the Jammu & Kashmir Consumers Protection Act, 1987 (for short hereinafter called the Act). Therein the claimant prayed that he be paid Rs.40,000/- as loss/damages occurred to him with interest @ 25% and compensation of Rs.8,000/- for suffering, pains, mental agony and cost of litigation.

3. The learned Divisional Forum Jammu, after recording the evidence awarded the claimant an amount of Rs.31020/- as loss assessed by the Surveyor with interest @ 12% per annum with effect from 28-04-1997, i.e., two months from the date of the report of the Surveyor. The petitioner-Insurance Company was also directed to pay Rs. 1000/- as costs of litigation to the complainant.

4. Aggrieved of the aforesaid order, the Insurance Company filed an appeal bearing No.2061 of 2000 before the Jammu & Kashmir State Consumers Protection Commission, Jammu. The appeal was dismissed.

5. The petitioner-Insurance Company has challenged the order elated 14.03.2000 passed by the learned Divisional Forum, Jammu as well as the order dated 04-01-2001 passed by the learned State Consumers Protection Commission, Jammu, in this writ petition.

6. Mr. R.K. Gupta learned counsel appearing for petitioner-Insurance Company submitted that the Insurance Company is not liable to pay the damages to the owner as the Driver of the ill-fated Bus was having a fake driving licence. He further submitted that Insurance Company is liable to satisfy the claim of third party even if the Driver is holding a fake driving licence, but the Insurance Company can only satisfy the claim of the owner if the Driver is holding a valid and effective licence as envisaged under section 149 (2) of the Act.

7. I have given my thoughtful consideration to the submissions of the learned counsel for the petitioner-Insurance Company.

8. The only defence the petitioner-Insurance Company has taken in the petition is that the petitioner-Insurance Company is not liable to satisfy the claim of the owner who has given/handed over the vehicle to a driver who was not holding a valid driving licence. When a owner of the vehicle permits a person to drive the vehicle, the owner has to see whether the driver to whom the Vehicle is being handed over/given is having a valid, driving licence or not and he is competent to drive the vehicle. He has not to make a full. Hedged enquiry about the validity of the driving licence as has been laid down by a Division Bench of this Court in 2005 (1) JKJ 42, National Insurance Co. Ltd. v. Irfan Sidiq Bhat and Mohd Aslam Khan. In the aforesaid case it has been observed as under:-

"We are conscious of the fact, as pointed out by Mr. Kawoosa, that the decision in National Insurance Co. v. Swaran Singh was rendered in the context of third party claim. In our opinion, the legal position would be no different in the case of own vehicle damage claim. While permitting a person to drive the vehicle, the owner is not supposed to make a full-Hedged enquiry about the validity of the driving licence. If the driving licence ex facie shows that the person is competent to drive a particular type of vehicle, the owner is not supposed to make enquiry from t

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