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IN THE HIGH COURT OF JHARKHAND AT RANCHI
MR. JUSTICE GAUTAM KUMAR CHOUDHARY, J
National Insurance Co. Ltd. – Appellant
Versus
Dhonjo Orain W/o Late Bihari Oraon – Respondent
| Table of Content |
|---|
| 1. overview of appeal and accident details. (Para 1 , 5) |
| 2. arguments regarding insurance policy breaches. (Para 2 , 3 , 4) |
| 3. discussion on passenger capacity and requirement of permits. (Para 6 , 7) |
| 4. interpretation of vehicle use regulations under law. (Para 8 , 9) |
| 5. judgment on evidence and conclusion of appeal. (Para 10 , 11) |
ORDER :
1. Insurance Company has preferred this appeal against the award of compensation passed in M.A.C. Case No.72/2013 whereby and whereunder the Tribunal awarded compensation of Rs.4,50,880/- with interest 7% per annum from the date of institution of the case till its realization.
2. This appeal has been preferred by the Insurance Company mainly on three grounds. Firstly, there was breach of policy of insurance as the driver of the vehicle was not having a valid driving license. Secondly, the said vehicle being a Tempo, was a commercial vehicle and was being used for hire or reward and was being plied without any valid permit. Thirdly, as per the evidence, there was overloading in the said Tempo as the witnesses have stated that there were 15-20 passengers in the said vehicle which met with an accident whereas as per the registration book o
To avoid liability, the insurer must demonstrate that policy breaches were fundamental and related to the accident, which was not proven in this case.
The absence of evidence for contract carriage usage invalidates claims of insurance policy breach, emphasizing that passenger status does not imply vehicle hiring.
Liability of the insurance company in case of violation of R.T.O. rules and breach of permit conditions
Operating a motor cab without a valid permit constitutes a fundamental breach of insurance policy, thus insurers are not liable for compensations claimed.
The main legal point established in the given judgment is the validity of the driving license and the liability of the Insurance Company under the Motor Vehicle Act.
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