NATIONAL INSURANCE CO LTD Vs. R K DUGGAL

JUDGEMENT

(1.) The point to be decided in all these three appeals, i.e., F.A.O. Nos. 2913, 2914 and 2915 of 2001 being the same shall be disposed of by this common judgment.

(2.) These appeals are filed by the insurance company, which is also made liable by the Motor Accidents Claims Tribunal to pay the awarded amount to the claimant- respondent. Learned counsel for the appellant argued that the driver of the vehicle was not having a valid driving licence and hence the insurance company could not have been saddled with the liability to pay the amount. In these three cases, the Tribunal has held that the licence of the driver was fake. However, it had relied on the case of New India Assurance Co. Ltd. v. Kamla, 2001 ACJ 843 (SC). Their Lordships have held in that case that the insurer and insured are bound by the conditions enumerated in the policy and the insurer is not liable to the insured if there is violation of any policy conditions. But the insurer who is made statutorily liable to pay compensation to third parties on account of the certificate of insurance issued shall be entitled to recover from the insured the amount paid to the third parties, if there was any breach of policy conditions on account of the vehicle being driven without a valid driving licence. We, therefore, find no infirmity in the award of the Tribunal.

(3.) If the insurance company is entitled to recover the amount from the insured, it may take legal steps, if advised. We have held in the case of National Insurance Co. Ltd. v. Bhagwati Devi, 2002 ACJ 1578 (P&H), that for this purpose, the insurance company can file a civil suit. After referring to section 175 of the Motor Vehicles Act we have observed in this judgment as under: