SHRIRAM GENERAL INSURANCE CO Vs. NARESH KUMAR BHARDWAJ

JUDGEMENT

(1.) THE Appellant Shriram General Insurance Company impugns a judgment dated 14.02.2012 whereby a compensation of RS.1,06,040/- was awarded in favour of the First Respondent for having suffered injuries in an accident which occurred on 11.07.2010.

(2.) THE only ground of challenge is that even though the Appellant successfully proved the breach of the terms of the policy, as the driver-cum-owner (the Respondent No.2) did not possess a valid driving licence at the time of the accident, yet instead of exonerating the Appellant, it was made liable to pay the compensation with a right to recover the same from the owner.

(3.) AGAIN in United India Insurance Company Ltd. v. Lehru & Ors., (2003) 3 SCC 338, in para 18 of the report the Supreme Court referred to the decision in Skandia(supra), Sohan Lal Passi(supra) and Kamla(supra) and held that even where it is proved that there was a conscious or willful breach as provided under Section 149(2)(a) (ii) of the Motor Vehicle Act, the Insurance Company would still remain liable to the innocent third party but may recover the compensation paid from the insured. The relevant portion of the report is extracted hereunder: