NEW INDIA ASSURANCE CO LTD Vs. P CHELLADURAI

JUDGEMENT

(1.) THIS appeal is by the insurance company challenging its liability to pay the compensation awarded by the Tribunal on the sole ground that there is a clear policy violation in this case. The driver of the vehicle was a 15 years old boy. Exh. P9 is the judgment of the magistrate Court's proceedings as regards the offence charged under section 304-A, indian Penal Code and section 3 read with section 181 of the Motor Vehicles Act. It is seen that the accused admitted his guilt and paid a fine of Rs. 2,100. On the face of this particular document and the finding of the Tribunal that the driver was a minor at the time of the accident, learned counsel for the appellant submits that this is a clear case of policy violation; in the circumstances, the appellant stated that it could not be mulcted with the liability.

(2.) A perusal of the order of the Tribunal shows that the investigating officer had clearly found the age of the driver at 15. However, the Tribunal rejected this fact disbelieving the information furnished by the investigating officer on the view that there were no evidence to support this fact. To quote the view of the Tribunal it stated

(3.) THE Tribunal relied on the decision reported in V. Mepherson v. Shiv Charan singh, 1998 ACJ 601 (Delhi) and held that for the policy violation the insurance company, the appellant herein, had to show that the owner had consciously violated the terms of policy. In the absence of the same, the insurance company could not be exonerated from its liability. In the circumstances, unless the insurance company proves that the driver did not have a valid licence and had driven the vehicle with the consent of the owner, the question of the insurance company getting out of its liability does not arise.