ORIENTAL INSURANCE CO. Vs. VAHARBHI RAI AND OTHERS

JUDGEMENT

(1.) CM-25357-CII-2013

(2.) Challenge in this appeal is to the award dated 23.07.2013 passed by learned Motor Accident Claims Tribunal, Ludhiana (for short, "the Tribunal") by virtue of which the petition claiming compensation under Section 166 of the Motor Vehicles Act, 1988 (for short, "the Act") filed by respondents No.1 and 2-claimants was allowed and the appellant/insurer of Tata Tempo bearing temporary No.PB-10BX-7207 and then assigned registration No.PB-10CN-8255 (hereinafter referred to as "the offending tata tempo"), was held liable for payment of the compensation.

(3.) The motor vehicular accident that took life of Rekha Rai (mother of respondent No.1, daughter of respondent No.2 and wife of respondent No.5), was caused by Suraj Kumar Patel (respondent No.3) due to his rash and negligent driving of the offending tata tempo which was insured with appellant-Oriental Insurance Co., who was impleaded as respondent No.3 in the petition under Sec. 166 of the Act, filed by the legal representatives of the deceased (respondents No.1 and 2 herein). The petition was contested by the appellant-insurance company raising various objections including the preliminary objection that Suraj Kumar Patel (respondent No.3 herein), driver of the offending tata tempo was not holding a valid and effective driving licence on the date of accident. Learned Tribunal held the insurance company liable for payment of compensation amount to the claimants, but simultaneously observed that the insurance company shall be entitled to recover the amount so paid from the insured by way of initiating separate proceedings in case the insurance company is able to establish that the insured had violated the terms and conditions of the policy.