SHRIRAM GENERAL INSURANCE CO Vs. MAHENDER KUMAR GIRDHAR

JUDGEMENT

(1.) THE Appellant Shriram General Insurance Co. impugns a judgment dated 12.01.2012 passed by the Motor Accident Claims Tribunal (the Claims Tribunal) whereby while awarding a compensation of RS.9,84,300/-, the Claims Tribunal directed the Appellant to satisfy the award with a right to recover the same from the Respondents No.2 and 3 (the owner and the driver of the offending vehicle) on the ground that there was a breach of the terms of the policy as the Respondent No.2 Aslam(the driver) did not possess a valid driving licence to drive the vehicle. On the other hand, it was established that the driving licence possessed by the driver was fake.

(2.) THE issue is no longer res integra that even in a case where the insurance company establishes a conscious breach of the terms of the insurance policy, the liability of the insurer to satisfy the decree vis-a-vis third party is statutory.

(3.) IN MAC APP 329/2010, Oriental INsurance Company Limited V. Rakesh Kumar and Others, decided on 3rd February, 2012, this Court noticed National INsurance Company Limited v. Swaran Singh & Ors., (2004) 3 SCC 297; Sohan Lal Passi v. P. Sesh Reddy, (1996) 5 SCC 21; New INdia Assurance Co., Shimla v. Kamla and Ors., (2001) 4 SCC 342 and United INdia INsurance Company Ltd. v. Lehru & Ors., (2003) 3 SCC 338 and held that even when there is a willful breach of the terms of policy under Section 149(2)(a) of the Act, the INsurance Company is under obligation to indemnify the liability towards the third party and recover the same from the owner.