[Motor Accidents] Non-Validity Of Driver's License Violates T&C Of Insurance Policy By Owner Of Offending Vehicle: Calcutta High Court
The Calcutta High Court has held that when a driver's license is invalid on the day of an accident, then it would be a violation of the terms and conditions of the insurance agreement by the owner of the offending vehicle, who allowed the driver to drive the vehicle without a valid license.
Justice Ajay Kumar Gupta held: "Furthermore, when the driving licence is not valid on the date of accident, it constitutes a violation of the terms and conditions of the insurance policy by the owner of the offending vehicle by allowing such driver to drive the vehicle without valid licence."
The Court was dealing with an appeal where the Motor Accident Claims Tribunal, Burdwan had allowed the M.A.C. Case No. 08 of 2009 in part against the National Insurance Co. Ltd. without cost and ex-parte against the owner of the offending vehicle bearing Registration No. WB-41A/5731.
It was further observed that the Petitioners would receive an award of Rs. 3,88,500/- and Petitioner No. 1 be granted an additional Rs. 5,000/- extra towards loss of consortium. In addition to that, it was stated that the Petitioners are entitled to recieve interest @ 6 % per annum over the amount being Rs. 3,88,500/- from 09.01.2009 to till the date of realization.
The Tribunal Judge also directed the Insurer to issue two A/C payee cheques of Rs. 1,29,500/- each in favour of the petitioner nos. 2 and 3 and one A/C payee cheque of Rs. 1,34,500/- in favour of petitioner no. 1 along with interest @6% per annum accrued for the period commencing from 09.01.2009 to till the date of realization and deposit the said cheques with the Tribunal.
Insurer was also granted liberty to take all steps available to get the said amount recovered from the owner of the vehicle bearing no. WB-41A/5731.
According to the facts, when the victim was proceeding along the G.T. Road along with petitioner no. 1 herein, one tractor bearing registration no. WB-41A/5731 dashed the victim which resulted in his death on the spot.
The owner of the vehicle appealed on the grounds that the Tribunal failed to consider that the accident was actually caused due to contributory negligence of the victim/deceased and that it erred in holding that the accident was solely due to the rash and negligent driving on the part of the driver of the offending vehicle.
Secondly, it was argued that the Tribunal Judge was wrong in casting the liability to pay compensation upon the appellant/owner of the offending vehicle holding that the driver's driving licence was invalid on the date of accident but ignored that the said licence had been renewed by the driver.
Thirdly, it was said that the Tribunal erred in directing the Insurance Company of the offending vehicle to pay the compensation to the claimants and to recover the same from the owner of the offending vehicle.
Counsel for the respondents argued that the accident occurred solely due to the rash and negligent driving of the driver of the offending vehicle and that, during trial, it was revealed from the evidence that the driving licence of the concerned driver was invalid on the date of accident.
The Insurance Company raised a specific plea that the driver had no valid licence at the time of the accident and produced one official from the Office of RTO, Burdwan.
From the records, it was found that the driving licence of the concerned driver was valid up to 06.01.2006 but the accident occurred on 23.01.2008. So, on the date of accident, the driver did not possess a valid driving licence.
In hearing the parties, the court noted that claimants were able to prove the accident occurred due to sole rash and negligent driving of the driver and it can be accepted that the accident took place due to the rash and negligence driving on the part of the driver of the offending vehicle.
It was stated that the Insurance policy was valid but the driving licence of the concerned driver was invalid on the date of accident and it is transpired from the evidence of RTO official that no renewal has been made in respect of the Driving Licence.
It held that the claim of the appellants is that the driver has renewed the licence but neither renewal driving licence nor any supporting document was produced before the Tribunal or Court to satisfy the contention of the appellants.
Accordingly it held that when the driving licence is not valid on the date of accident, it constitutes a violation of the terms and conditions of the insurance policy by the owner of the offending vehicle by allowing such driver to drive the vehicle without valid licence.
Thus, it dismissed the appeal and affirmed the order of the tribunal.
Case: Sri Barun Mukherjee and Another Versus National Insurance Company Limited & Others
Case No: FMA 358 of 2013
Citation: 2024 LiveLaw (Cal) 258