Insurance liability remains unless policy breach is conclusively proved.

1. The appellant insurance company has challenged award dated 12.3.2019 passed by the Motor Accidents Claims Tribunal, Srinagar (hereinafter referred to as 'the Tribunal'), whereby compensation in the amount of Rs.20,54,251 along with interest at 6.5 per cent per annum has been awarded in favour of respondent Nos. 1 to 3 (hereinafter referred to as 'the claimants') and the appellant has been burdened with the liability to satisfy the said award.

2. The claim petition has arisen out of a road accident that took place on 7.9.2012, as a result of which one Ghulam Hassan Rather, who happened to be the father of respondent Nos. 1 and 2 and husband of respondent No. 3, suffered fatal injuries. In the claim petition, it was alleged that the deceased was travelling in a vehicle bearing No. JK 01 - F 4924 that was being driven rashly and negligently by its driver, respondent No. 4 herein, as a result of which the vehicle met with an accident upon reaching Wushoo on Wangam - Chadoora Road. It was submitted by the claimants that the deceased was aged 52 years and he was working as a beldar in Radio Kashmir, Srinagar, drawing a monthly salary of Rs.30,000. The claimants sought compensation in the amount of Rs.30,00,000 along with interest at 12 per cent per annum.

3. The claim petition was resisted by the appellant insurance company as well as by respondent Nos. 4 and 5, the driver and owner of the offending vehicle. The appellant insurance company in its reply admitted the currency of policy of insurance of the offending vehicle on the date of the occurrence. It was, however, claimed that owner of the offending vehicle had committed breach of the policy conditions, inasmuch as driver of the offending vehicle was not holding a valid driving licence nor the documents of the vehicle were valid. The owner and driver of the offending vehicle viz. respondent Nos. 4 and 5, while denying the occurrence, claimed that the compensation sought by the claimants is highly excessive.

4. In terms of order dated 21.12.2012, the Tribunal, on the basis of the pleadings of the parties, framed the following issues:
"(1) Whether on 7.9.2012 the respondent No. 1 was driving the Tata 407 mini bus bearing registration No. JK 01 - F 4924 rashly and negligently and carelessly from Wagam - Chadoora Road, the diver of the offending vehicle lost control over his vehicle, with the result, the vehicle fell into a gorge, as a consequence of which the deceased namely Gh. Hassan Rather, who was travelling in the said vehicle sustained fatal injuries resulting in his death on spot? (OPP)
(2) Whether the respondent driver of the offending vehicle Tata 407 was permitted by the respondent owner to drive the offending vehicle without holding a valid and effective DL on the material date of accident and the other documents like RP, FC, RC and IC, etc. If yes, the insured has committed breach of policy stipulations which absolves the respondent insurance company from its liability? (OPR - 3)
(3) Whether the claim petition is not maintainable in the present form as the Hon'ble court lacks territorial jurisdiction to try and hear the matter? (OPR - 3)
(4) Whether the petitioners are entitled to any compensation, if yes, from whom and to what extent? (OPP)
(5) Relief?"

5. After recording evidence of the parties, the Tribunal held that the accident was caused due to rashness and negligence on the part of the driver of the offending vehicle which resulted in death of the deceased. It was also held that the appellant insurance company has failed to prove that there was any breach of the policy conditions. Accordingly, compensation in the amoun