UNITED INDIA INSURANCE CO.LTD. Vs. RAJ BAHADUR

JUDGEMENT

(1.) The Insurance Company has laid a challenge to the award passed in M.A.C. C. No. 28-S/2 of 2007 by the

(2.) Shri Lalit K. Sharma, the learned Counsel for the appellant-Insurance Company vehemently argued that the origin of the driving licence is proved to be fake. Its renewal will not presume the validity, as such, there is a breach of terms and conditions of the policy. To substantiate his arguments, he put his reliance on the judgment of the Apex Court rendered in National Insurance Co. Ltd. Versus Swaran Singh and others, 2004 ACJ 1.

(3.) The summary of the findings given in para-102 of the judgment do include the breach of policy conditions, for example, disqualification of driver or invalid driving licence of the driver, as contained in sub-section (2) (a) (ii) of Section 149, which have to be proved having been committed by the insurer. It also held that mere absence, fake or invalid driving licence or disqualification of the driver for driving at the relevant time, are not in themselves defences available to the insurer against either the insured or the third parties. To avoid its liability towards insured, the insurer has to prove that the insured was guilty of negligence and failed to exercise reasonable care in the matter of fulfilling the conditions of the policy regarding use of vehicles by duly licensed driver or one who was not disqualified to drive at the relevant time. Further, to establish the available defences raised in the pleadings, the Insurance-Company is also bound to establish 'breach' on the part of the owner of the vehicle, the burden of proof wherefor would be on them which, of course, depends upon the facts and circumstances of each case. Further, the question as to whether the owner has taken reasonable care to find out as to whether the driving licence produced by the driver, (a fake one or otherwise), does not fulfill the requirements of law or not will have to be determined in each case.