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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
PANKAJ JAIN
Future Generali General India Insurance Company Ltd. – Appellant
Versus
Sunita Devi – Respondent
JUDGMENT :
PANKAJ JAIN, J.
1. Insurance company is in appeal against order dated 02.11.2023 passed by Commissioner Circle IV, Gurugram under Employees Compensation Act, 1923.
2. Though, the Tribunal has returned the finding that the driver was not possessing a valid driving license on the date of accident, but the appellant-insurance company has been held liable to pay compensation at the first instance and thereafter to recover from the employer.
3. Insurance company is aggrieved of the observations made by Commissioner to the effect that they have been directed to pay compensation. Reliance is being placed on ratio of law laid down by Supreme Court in the case of Beli Ram vs. Rajinder Kumar and another 2020 AIR (Supreme Court) 4453
4. Counsel for the respondents-claimants submits that in the present case, the license expired on 31.03.2022 and the date of accident is 23.05.2022. Thus, it is not a case wherein there was a long time gap. Reliance is being placed upon observations made by Supreme Court in para 15 of the Beli Ram’s case (supra) which read as under:-
“15. We are of the view that once the basic care of verifying the driving licence has to be taken by the employer, though a
Employers have a duty to ensure that drivers maintain valid licenses; failing to do so constitutes a breach of insurance policy terms, relieving insurance companies from liability for claims.
An employer may be held vicariously liable when an employee operates a vehicle without a valid license, negating insurer liability in case of substantive policy breach.
The main legal point established in the judgment is the burden of proof on the Insurance Company to establish that the deceased did not possess a valid driving licence and the application of the prin....
The validity of the driving license is a consideration under a contract of insurance, and the insurer can raise the issue in the proceedings under the Employees Compensation Act.
Employers must ensure employees hold valid driving licenses; failure results in insurer's liability being voided under policy conditions.
Owner solely liable for workmen's compensation when permitting LMV-licensed driver without valid HMV licence to operate heavy vehicle, absolving insurer due to attributable policy breach; appeal dism....
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