Insurer bound to pay even if driving licence is fake: Gauhati High Court

  Third party compensation claims

STAFF REPORTER

GUWAHATI: The Gauhati High Court has ruled that an insurance company is not absolved from compensating the third party involved in a mishap even if the driver in question had used a fake license at the time of the motor vehicle accident.

A single-judge Bench comprising Justice Arun Dev Choudhury passed a judgment and order to this effect while dismissing an appeal filed by the United India Insurance Company Limited, challenging a judgment and award passed by the Member, Motor Accident Claims Tribunal No. 2, Kamrup. The Motor Accident Claims Tribunal has passed the impugned judgement and award in favour of a 50-year-old woman who was knocked down by a rashly-driven car on the roadside near the Changsari Bhakat Suba Tiniali on April 12, 2011. Consequently, she had to undergo a lengthy period of hospitalization.

The insurance company's counsel challenged the Tribunal's award on the ground that the award ought to have been made payable by the owner-cum-driver of the vehicle involved in the accident, because he had a fake driving at that time.

The High Court Bench referred to various relevant judgments passed by the Supreme Court. The Bench noted that the Supreme Court has held that "mere absence, fake or invalid driving license 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... It was also held … that 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 policy regarding use of vehicle by duly licensed driver or one who was not disqualified to drive at that relevant point of time".

The Bench noted that the Supreme Court has also laid down that if a driver of an offending vehicle does not possess a valid driving license, the principle of 'pay and recover' can be ordered.

The Bench observed that "it is also of the considered opinion that the third party victim shall not be allowed to suffer any further and therefore, this is a fit case whether the principle of 'pay and order' can be directed. Therefore, the learned (Motor Accident Claims) Tribunal has not committed any error while passing the impugned judgment. Accordingly, the present appeal is dismissed, being devoid of any merit".

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