The Insurance Company is statutorily liable to satisfy third-party claims in motor accident cases even if the driver lacked a valid license, although the insurer retains the right to recover the compensation from the vehicle owner and driver.

ORDER

1. These Miscellaneous Appeals, namely MA No. 1201/2011 and MA No. 1203/2011, arise out of the common award dated 02/05/2011 passed by the Member, Additional Member, Motor Accident Claims Tribunal, Guna (M.P.) in Claim Case No. 58/2009 and Claim Case No. 59/2009.

2. Both the appeals have been preferred by the appellants/claimants challenging the impugned award, on the ground of inadequacy of compensation and enhancement of compensation and totally exoneration of Insurance Company from its liability to pay compensation to the claimants.

3. Since both the appeals arise out of the same award and involve common questions of fact and law, they were heard together and are being decided by this common judgment.

4. The date of accident and the issue of negligence are not in dispute. The dispute pertains only to the question of liability and quantum of compensation.

5. In MA No. 1203/2011, learned counsel for the appellants/claimants submitted that the Claims Tribunal committed an error in awarding compensation. It is submitted that claimants have filed income tax return of deceased but Claims Tribunal discarded income tax return and assessed monthly income of deceased on lower side. It was further submitted that at the time of the accident, the driver of the offending vehicle did not possess a valid driving licence and, therefore, the Claims Tribunal completely exonerated the Insurance Company from its liability. It was argued that the claimant is a third party and, as such, the Insurance Company is statutorily liable to pay compensation to the claimant, with liberty to recover the same from the owner and driver of the offending vehicle. Accordingly, a prayer was made for enhancement of compensation to a just and reasonable amount and for issuance of a direction to the Insurance Company to pay the compensation to the claimant with liberty to recover the same from the owner and driver of the offending vehicle.

6. In MA No. 1201/2011, learned counsel for the appellants/claimants submitted that the Claims Tribunal committed an error in awarding compensation. It is submitted that claimants have filed income tax return of deceased but Claims Tribunal discarded income tax return and assessed monthly income of deceased on lower side. but Claims Tribunal disbelieve income tax return and assessed monthly income of deceased on lower side. It was further submitted that at the time of the accident, the driver of the offending vehicle did not possess a valid driving licence and, therefore, the Claims Tribunal completely exonerated the Insurance Company from its liability. It was argued that the claimant is a third party and, as such, the Insurance Company is statutorily liable to pay compensation to the claimant, with liberty to recover the same from the owner and driver of the offending vehicle. Accordingly, a prayer was made for enhancement of compensation to a just and reasonable amount and for issuance of a direction to the Insurance Company to pay the compensation to the claimant with liberty to recover the same from the owner and driver of the offending vehicle.

7. On the other hand, learned counsel for respondent No.3/Insurance Company supported the impugned award and submitted that the Claims Tribunal has rightly assessed the compensation based on th