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IN THE HIGH COURT OF JHARKHAND AT RANCHI
GAUTAM KUMAR CHOUDHARY, J.
Oriental Insurance Company Limited, Through Its Divisional Manager, Circular Road – Appellant
Versus
Subash Pandey, S/o Late Pran Kisto Pandey – Respondent
| Table of Content |
|---|
| 1. compensation awarded based on non-disputed insurance cover. (Para 1 , 2 , 3) |
| 2. breach of terms must be evidenced for liability implications. (Para 4 , 5 , 6 , 8 , 9) |
| 3. court directs payment of compensation within stipulated time. (Para 10 , 11 , 12) |
JUDGMENT :
1. Heard, learned counsel for the parties.The instant Misc. Appeal has been filed against the judgment/Award of compensation dated 01.06.2015 passed by learned District Judge 1st-cum-MACT, Bokaro, in TMV No.73 of 2008 along with interest @6% per annum from the date of filing of claim application till its realization has been allowed in favour of the claimants directing the appellant-Insurance Company to make payment and further liberty has been given to recover the compensation amount from the owner of the offending vehicle.
2. The appeal has been preferred mainly on the ground that since there is breach of terms and conditions of the insurance policy, as the driver was not holding a valid and effective driving licence at the time of accident, therefore, Insurance Company should not have been directed to pay the compensation amount.
3. However, it is evident that it has not been disputed that the offending vehi
Insurance liability persists unless clear evidence of policy breach is established, particularly regarding driver's valid license classification at the time of an accident.
The principle of 'pay and recover' in the context of the liability of the Insurance Company under the Motor Vehicles Act.
The lack of a valid driving license by the driver constituted a violation of policy condition and statutory violation, placing the burden on the owner to establish the driver's valid license.
The owner of a vehicle must verify the driver's valid licence; failure to do so constitutes a breach of insurance policy terms, absolving the insurer of liability.
Section 149(2) deals with insurer's right to defend an action on account of breach of policy condition.
An insurer cannot avoid liability for compensation due to an expired driver's license without proving the insured's negligence in fulfilling policy conditions.
Insurers can recover compensation amounts from vehicle owners if driving license violations invalidate coverage under the Motor Vehicles Act.
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