Insurance liability may be dismissed if the insured fails to comply with policy conditions, such as allowing an unlicensed driver to operate the vehicle, yet the insurer must compensate victims initially.

(PER: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI)

This Miscellaneous First Appeal is filed by the insurance company challenging the judgment and award dated 31.05.2013 passed in M.V.C.No.277/2011 by the learned I Addl. Senior Civil Judge and Addl. M.A.C.T., Hubballi.

2. Brief facts, leading rise to the filing of this appeal are as follows:

3. One Ramanagouda S/o. Mallanagouda Gurunagoudar met with an accident on 20.11.2010, and sustained grievous injuries, and succumbed to the injuries. The accident occurred due to the rash, and negligent riding of the rider of Hero Honda motorcycle bearing registration No.KA-25/R-4051. The rider of the motorcycle was riding the motorcycle in a rash and negligent manner and dashed to the deceased Ramanagouda. Due to the said impact, he sustained grievous injuries and succumbed to the injuries. The petitioners, being the legal representatives of the deceased Ramanagouda filed a claim petition under Section 166 of the M.V. Act seeking a compensation due to the death of Ramanagouda in a road traffic accident. It is contended that the deceased Ramanagouda was doing mason work under contractors and engineers, and used to earn Rs.300/- per day i.e., Rs.9,000/- p.m. Hence, prays to allow the claim petition.

4. The Appellant- insurance company filed a statement of objections denying the averments made in the claim petition, and it is contended that the rider of the motorcycle was not possessing a valid and effective driving license as of the date of the accident. It is contended that the charge sheet is filed against the rider of the motorcycle for the offence punishable under Section 3 of the Motor vehicles Act. It is also contended that there is a violation of policy conditions, and the insurance company is not liable to pay the compensation, as prayed for, in the claim petition. Hence, prays to dismiss the claim petition, against the insurance company.

5. The rider of the motorcycle filed a statement of objections denying the claim petition averments. It is contended that he was not negligent in riding the motorcycle. It is contended that the motorcycle was insured with the insurance company as of the date of the accident, and the policy was in force. Hence, prays to dismiss the claim petition against the rider of the motorcycle.

6. The owner of the motorcycle filed a memo adopting the written statement filed by the rider of the motorcycle.

7. The Tribunal, based on the pleadings of the parties, framed the relevant issues.

8. The petitioners, to substantiate their case, petitioner No.2 was examined as PW-1, one witness was examined as PW-2, and 8 documents were marked as Exs.P-1 to P-8. The official of the respondent-insurance company was examined as RW-1, and the rider of the motorcycle was examined as RW-2, and marked 4 documents as Exs.R-1 to R-4.

9. The Tribunal, after assessing the verbal and documentary evidence, allowed the claim petition in part vide judgment and awarded dated 03.05.2013 and held that the claimants are entitled to a compensation of Rs.5,37,000/- with interest at the rate of 6% p.a. from the date of petition till its realization, and held that respondent Nos.1 (owner) and 2 (Insurance Company) and are jointly and severally liable to pay the compensation with accrued interest. The insurance company, aggrieved by the judgment and award passed by the Tribunal, filed this Miscellaneous First Appeal.

10. Heard the arguments of the learned counsel for the insurance company, and the learned counsel for the petitioners.

11. A Notice was issued to the respondents.

Despite the service of the notice, the owner, and rider of the motorcycle remained unrepresented.

12. Learned counsel for the appellant-insurance company submits that the rider of the motorcycle was not possessing a valid and effective driving license as of the date of