The absence of a valid driving license does not automatically exempt an insurance company from liability for damages resulting from an accident.

J U D G M E N T

This appeal is preferred by the insurance company and the cross objection is filed by the rider of the offending vehicle involved in the accident. The claimant sustained injuries in a road accident and he has been awarded a compensation of Rs.36,650/-. The respondent in the claim petition namely respondents 1 and 2 did not file any written statement before the Tribunal. The insurance company took up the contention that rider did not have a valid driving licence and therefore there is breach of policy conditions which would entitle it to get reimbursement from the owner of the vehicle. The Tribunal in paragraph 12 observed that the insurance company has not proved the absence of a valid driving licence during the relevant time of accident. Learned counsel for the insurance company would contend that an application was filed for production of driving licence and the licence has not been produced. Whatever it is, whether there was a valid licence on the date of accident is a matter to be probed into in order to prove the breach of policy conditions. The learned counsel for the driver very strongly contends before me the mere absence of a driving licence is not sufficient to exonerate the insurance company from the liability in the light of the principles laid down in Swaran Singh's case National Insurance Co. Ltd. v. Swaran Singh (2004 (1) KLT 781). He specifically refers to paragraph 102 (iii) and (vi) for that purpose.

2. The learned counsel for the owner would contend regarding the transfer but he admits about the non-transfer of the vehicle in the registration certificate. So all these matter require consideration. But the claimant is not made a party before this Court and no relief is claimed against him by the insurance company which indicates that the insurance company will satisfy the award and they are only claiming a recovering right from the owner-cum-driver, if ultimately it succeeds. I also confirm the finding on the quantum of compensation. With this observation the matter is remitted back to the Tribunal for fresh consideration by permitting respondents 1 and 2 in the claim petition to enter appearance and file their written statements and the question of interse liability and the entitlement for realisation to be considered by the Tribunal in accordance with the settled principles of law. Parties are directed to appear before the Tribunal on 18.12.08. Presence of the claimant need not be insisted for further proceeding in the case.

The MACA is disposed of accordingly.

M.N. KRISHNAN, JUDGE.

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