LALI DEVI Vs. ORIENTAL INSURANCE CO

JUDGEMENT

(1.) THE claimants-appellants have filed this appeal under Section 173 of the Motor Vehicle Act, 1988 against the judgment and award dated 6. 07. 2000 passed by the Motor Accident Claims Tribunal, Jaipur in MAC No. 556/95 for passing award against the Insurance Company also.

(2.) THE claimants-appellants filed an application for compensation under Section 166 of the Motor Vehicle Act, 1988 in respect of death of late Shri Rameshwar Lal who died in an accident which took place on 18. 11. 94 arising out of use of motor vehicle. THE learned Tribunal vide impugned judgment dated 6. 07. 2000 passed an award of Rs. 4,15,000/ -. Rs. 50,000/- was ordered to be adjusted which were paid as interim award and remaining amount of Rs. 3,65,000/- was directed to be paid alongwith interest @ 12% per annum from the date of claim application i. e. 22. 3. 95 till the date of payment. However, the award was passed only against the owner and driver of the vehicle in view of the finding of Issue No. 3 wherein the Tribunal recorded a finding that driver was not holding a valid and effective driving licence. THE Tribunal recorded a finding that driving licence produced in the case was fake licence, therefore, Insurance Company cannot be made liable as there is breach of terms and conditions of insurance policy.

(3.) IN National INsurance Co. vs. Swaran Singh (supra), the Hon'ble Supreme Court has held as under :- " (iii) The breach of policy condition e. g. disqualification of the driver or invalid driving licence of the driver, as contained in sub-section (2) a (ii) of Section 149, has to be proved to have been committed by the insured for avoiding liability by the insurer. 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 the 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 condition of the policy regarding use of vehicles by a duly licensed driver or one who was not disqualified to drive at the relevant time. (vii) 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. "