Insurance companies cannot hide behind the fake licence of a driver of an insured vehicle, which is involved in an accident, to deny compensation to the victim or his kin, the Supreme Court has ruled.
“Only because the driver possesses a fake licence, that would not absolve the insurer to reimburse the owner of the vehicle the amount awarded in favour of a third party by the Motor Accident Claims Tribunal,” a Bench comprising Justices S B Sinha and V S Sirpurkar said.
Alternatively, if the insurance company pays the third party claim to the victim or his kin, it would be at liberty to recover the same from the owner of the vehicle, the Bench said.
One Ishwar Dutt Bhat, while travelling in a threewheeler, met with an accident being hit by a truck from the rear. The truck was insured with National Insurance Company. NIC resisted the claim petition filed by Dutt’s kin on the ground that the driver of the truck had a fake licence.
On appeal before the Supreme Court, the Bench said that there was a distinction between a claim made by the owner on account of damages to the vehicle and the compensation payable to the third party.
In case of fake licence, the insurance company may not be liable to pay on account of the damages to the vehicle, but it would not be absolved of its responsibility to meet the third party compensation in an accident, the Bench clarified.
The Times of India 2 April 2008, P 11 Delhi
With thanks from The Time of India
The Times of India 2 April 2008, P 11 Delhi
With thanks from The Time of India
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