NATIONAL INSURANCE COMPANY LIMITED Vs. GONTI EIIZA DAVID

JUDGEMENT

(1.) Truck No. ATY 2996 belonging to Karnataka Rural Water Development Company Private Limited (Company) of Bangalore, was proceeding from Jalgaon towards Chalisgaon on 3rd April, 1979 along the State Highway, carrying some drilling equipment and accessories as well as the company servants. One John Buryan David who was employed by the Company for its drilling operations was one of the passengers of the truck which was being driven by Sadanand Karbali Kamble, another employee of the Company. As a result of an accident, the truck turned tutile and John Buryan who received the impact of heavy drilling equipment died on the spot. The parents of the deceased John Buryan applied to the Motor Accidents Claims Tribunal for Jalgaon District at Jalgaon for compensation impleading the company and the National Insurance Company Ltd. of Hyderabad, (insurer) with whim the truck was insured, as the opponents. The Tribunal awarded damages to the tune of Rs. 27,500/- in favour of the petitioners against the opponents and they were made liable jointly and separately. The Company did not prefer an appeal but the Insurer challenges the award in this appeal on two legal grounds.

(2.) In the first place, the Insurer places reliance on section 96(2)(b)(ii) of the Motor Vehicles Act, 1939, which makes it permissible to plead and prove that a condition excluding driving by a named persons or by any person who is not duly licensed or by any person who has been disqualified for holding or obtaining a driving licence during the period of disqualification, can be a defence to an action against the Insurer. According to the Insurer the driver of the vehicle did not hold a valid driving licence at the relevant time and hence they are absolved of any liability to pay the insurance amount, in view of the clarification appearing in the Schedule to the Insurance Policy to the effect that the person driving must hold a valid driving licence at the time of the accident or must have held a permanent driving licence other than the learners licence and was not disqualified from holding or obtaining such a licence.

(3.) This plea was canvassed before the Tribunal which held that the initial burden is on the insurer to prove that the driver did not hold a valid driving licence at the time of the accident.