ORIENTAL INSURANCE CO LTD Vs. SELVAM

JUDGEMENT

(1.) It is the case of injury caused on account of the accident took place on 26.03.2013 around 01.30 p.m on Tirunelveli-Tiruchendur main road near PMS I.T.I. The injured claimants filed applications in MCOP. Nos. 525 and 526 of 2013, seeking compensation before the Motor Accident Claims Tribunal cum Special Sub Judge, Tirunelveli, and the Tribunal considering the facts and the circumstances of the case, awarded Rs. 1,67,720.00 and Rs. 3,14,870.00 respectively, as total compensation with interest at 9% per annum. The appellant insurance company preferred these appeals, challenging the liability and quantum.

(2.) In respect of the liability, learned counsel for the appellant contended that before the Tribunal, the insurance company raised the question regarding the validity of the driving licence. The procedure of calling for the documents regarding licence was followed by the insurance company and in spite of their action, the driver who was driving the vehicle, which met with the accident nor the owner, did not produce any document. In the absence of the production of any valid driving licence, it is to be construed that the driver was not in possession of a valid driving licence. The fact regarding the invalidity of licence was raised before the Tribunal and the Tribunal failed to make an observation or frame an issue in this regard. Hence, the counsel for the appellant argued that it is a case of pay and recovery and the same is to be ordered.

(3.) In respect of the liability of the insurance company, this Court and the Honourable Apex Court settled the principle that the claimant is a third party and even if there is any violation of policy condition, in respect of the claim made by the third parties, the Insurance Company has to pay the award amount to the claimant at the first instance and thereafter, to recover the same from the owner of the vehicle.