Punjab-Haryana High Court
New India Assurance Company Ltd. And ... vs Makhan Singh And Ors. on 27 July, 2005
Equivalent citations: II(2006)ACC164, 2006ACJ2523, (2006)142PLR467
Author: Ashutosh Mohunta
Bench: Ashutosh Mohunta
ORDER Ashutosh Mohunta, J.
1. The insurer has filed the present appeal against the judgment of the Motor Accident Claims Tribunal, Patiala, dated 2.11.1998 by which a total compensation of Rs. 2,35,000/- along with interest was awarded to the respondents/claimants.
2 The only point raised by the counsel for the appellant is that the Insurance Company is not liable to indemnify the insured as the driver of the offending vehicle did not possess a valid driving licence as the licence was fake. The question whether the Insurance Company can escape its liability from indemnifying the insured in a case of fake or , invalid driving licence has been answered by the Hon'ble Supreme Court in the case of National Insurance Co. Ltd v. Swaran Singh and Ors. (2004-1)136 P.L.R. 510 (S.C.). wherein it has been 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.
3. This view has also been taken by the Hon'ble Supreme Court of India in United India Insurance Co. Ltd v. Lehru and Ors. (2003-2)134 P.L.R. 124 (S.C.).
4. An owner of a vehicle can only verify about the driving licence of the driver by seeing the stamp of the Regional Transport Authority on the driver licence. The owner has no other means to verify the genuineness of a driving licence. Once an employer employs a driver after proper care, then the Insurance Company cannot be absolved of its liability to indemnify the insured on account of an invalid or fake driving licence because the Insurance Company has not led any evidence to prove that the insured was guilty of any 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.
In view of the aforementioned judgments, the Insurance Company is liable to indemnify the insured/ Resultantiy, I find no merit in this appeal and the same is dismissed.