UNITED INDIA INSURANCE CO.LTD. Vs. JIYA BAI

JUDGEMENT

(1.) THE instant appeal is preferred by the appellant insurance company against the judgment cum award dated 1.12.2011 passed by learned Judge, Motor Accident Claims Tribunal, Sojat, District Pali in MAC No.98/2010 whereby the learned Tribunal whilst accepting the claim application filed by the respondent claimant Jiya Bai, a compensation of Rs.98,000/ - was awarded to her towards the injuries received by her in an vehicular accident.

(2.) WHILST awarding the compensation, the owner and driver of the insured vehicle were held jointly and severally liable to satisfy the award. However, the appellant insurance company was given a direction to satisfy the award upfront and thereafter, was given liberty to recover the amount from the owner by filing execution proceedings. It is against the said direction that the appeal has been preferred by the appellant insurance company.

(3.) THE learned Tribunal whilst considering the issues raised before it held that the insurance company was entitled to the defences under Section 149(2) of the Motor Vehicles Act regarding the breach of the policy conditions in view of the fact that the driver of the offending vehicle was not holding a licence of appropriate category. The insurance company accordingly was exonerated of the liability to indemnify the award. However, in light of the decision rendered by the Hon'ble Supreme Court in the case of National Insurance Co.Ltd. Vs. Swaran Singh & Ors. reported in AIR 2004 SC 1531, the only appropriate direction looking to the claimant's interests was to direct the appellant insurance company to pay the compensation and thereafter recover the same from the owner by way of execution proceedings. That is what exactly and rightly has been done by the Tribunal in this case.