NEW INDIA ASSURANCE COMPANY LIMITED Vs. RAKESH VIJ

JUDGEMENT

(1.) The only point taken in appeal by the appellant/insurance company to challenge the award of the Motor Accident Claims Tribunal is that the Tribunal ought not have awarded compensation in favour of the appellant s for the death of their predecessor-in-interest who died in a road accident caused by the rash and negligent driving of the offending vehicle by its driver as the driver at the relevant time did not have a valid driving licence. It is submitted that since the insured by permitting the driver who did not have a valid driving licence had violated the conditions of the contract of insurance, the insurance company could not be held liable to pay compensation to the claimants.

(2.) Supreme Court in a recent judgment reported as New India Insurance Co. Ltd. Versus Lehru (2003) 3 SCC 338 has held that even if the driving licence was fake, the insurance company cannot escape its liability to pay compensation to the innocent third party, however, it may be able to recover the amout so paid to the third party from the insured. In the present case, the Tribunal has held that though the driving licence held by the driver was fake and forged but the insurance company would still be liable to idemnify the insured. Since in view of the judgment of the Supreme Court in New India Insurance Co. Ltd. Versus Lehru (supra) the insurance company after payment of compensation to the claimants has a right to recover the same from the insured if it is proved that the insured knowing fully well that the driver did not have a valid driving licence, has still permitted the driver to drive the vehicle, in my opinion, this matter can be remanded to the Tribunal to decide the limited question as to whether or not the owner was aware that the licence issued in the name of the driver was fake and still permitted the driver to drive the vehicle. In case it is proved that the respondent/ insured permitted the driver to drive the vehicle despite fully knowing that the driver had a fake licence, the insurance company can recover the amount by execution from the insured. I, accordingly, partly allow this appeal and remand the matter to the Tribunal to decide the limited question as to whether the insured was aware that the driving licence held by the driver was fake and he still permitted the driver to drive the vehicle. If this question is decided against the insured, the insurance company will be at liberty to recover the amount of compensation from the insured. With these observations, the appeal stands disposed of.

(3.) The parties are directed to appear before the Tribunal on 26.9.2003.