ORIENTAL INSURANCE COMPANY LIMITED Vs. MASTER SHEKHAR

JUDGEMENT

(1.) THE Appellant Oriental Insurance Company Limited impugns the judgment dated 09.02.2010 passed by the Motor Accident Claims Tribunal (the Claims Tribunal) whereby a compensation of Rs.35,000/- was awarded in favour of the first Respondent who suffered injuries in an accident which occurred on 01.09.2004.

(2.) THE sole ground of challenge is that although the driver was aged less than 18 years and therefore, incompetent to hold a driving licence on the date of the accident, the Claims Tribunal not only made the Appellant liable to pay the compensation, but even the recovery rights were not granted.

(3.) THE contention raised on behalf of the Appellant is misconceived. It has to be borne in mind that the breach of the terms of the policy must be proved to have been committed by the Insured. It is nobody's case that the insured entrusted the TSR to a person not possessed of a valid driving licence. THE driver was taking tea at the time of the accident. Harish, who drove the scooter without any permission or authorization of the owner or the driver in fact, committed theft of the TSR. Thus, It cannot be said that the owner was guilty of committing breach of the terms of the policy.