The Bombay High Court has issued a directive to an insurance company, instructing them to compensate the family of a woman who lost her life in a vehicle accident.
This decision stands despite the fact that the driver involved had an expired license, as the court deemed that an expired license does not necessarily imply incompetence.
A single-judge bench of Justice Shivkumar Dige overturned the ruling of the Motor Accident Claim Tribunal, which had absolved the insurance company of any responsibility based on the expired license. Additionally, the court upheld the original claimant's right to appeal in this particular case.
Brief Facts:
The Appeal resulted from the exoneration of the Insurance Company from paying compensation.
Contentions of the Appellant:
The learned Counsel for the Appellant contended that the tribunal observed that the driver of the offending vehicle didn’t have a valid and effective driving license on the date of the accident, resulting in the breach of terms and conditions of the Insurance Policy; therefore, Insurance Company is not liable to indemnify, which is an improper observation. Hence, requested to allow the Appeal.
Contentions of the Respondent:
The learned Counsel for the Respondent submitted that the claimant could not be considered as an aggrieved party against the Insurance Company, citing section 173 of the Motors Vehicle Act and relying on Balu Krishna Chavan V/s. The Reliance General Insurance Co. Ltd. and Biju R. & Ors. V/s. Vivekanandan and Ors.
Observations of the Court:
The court determined that at the time of the accident, the truck involved was insured by the Insurance Company and therefore, the company had a contractual obligation to provide compensation. The court clarified that the non-renewal of the driver's license at the time of the accident did not necessarily imply that the driver lacked skills.
Notably, the court ruled that the Insurance Company should pay the compensation and then recover it from the truck owner. According to a well-established legal principle, if the driver of the offending vehicle does not possess a valid and effective license, the Insurance Company is initially responsible for paying compensation and can later seek reimbursement from the owner. Although the truck owner did not contest the order, it does not prevent the claimants from challenging it. Therefore, the court concluded that any person affected by the decision has the right to file an appeal.
The decision of the Court:
The Bombay High Court allowed the appeal and held that any aggrieved person can file the Appeal.
Case Title: Subhash Waman Baviskar & Ors. v. Adinath Hambirro Budhwat & Ors.
Coram: Hon’ble Justice Shivkumar Dige
Case no.: FIRST APPEAL NO.410 OF 2016
Advocate for the Appellant: Mr.Niketan Nakhawa
Advocate for the Respondents: Mr.Rajesh Kanojia a/w Ms.Nikita Singh
Read Judgment @LatestLaws.com
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