National Insurance Co. Ltd.
Vs.
Swaran Singh and Ors.
Motor Vehicles Act, 1988 - 149, 149(1), 149(2), 149(4), 149(5) Motor Vehicles Act, 1939 - Sections 11 and 96(2); Third Parties (Rights against Insurers) Act, 1930; Road Traffic Act, 1930; Road Traffic Act, 1988; Motor Vehicles Rules, 1939 - Rule 16 – Motor Accident Claim – Liability of Insurance Company - Section 149 (2) (a) (ii) vis-à-vis proviso appended to Sub-Section (4) and (5) – Interpretation of - Vehicles insured with petitioners involved in accidents resulting in filing of Motor Accident Claims – Defences raised by Petitioner Company in claim petitions in terms of Section 149 (2) (a) (ii) that Driving licence was fake, driver not having licence, licence though granted to concerned driver, on expiry, not renewed, licence granted for descripttion of one class of vehicle but vehicle involved in accident of different class, vehicle driven by person having learner’s licence – Plea of petitioner company that once insurer establishes its defence, Tribunal or Court cannot direct insurance companies to pay awarded amount to claimant and in turn recover same from owner – Validity – Dismissing petition, held that it is well settled law that insurance company is liable to satisfy the decree at first instance and to recover awarded amount from owner of the vehicle - Insurer is entitled to raise a defence in a claim petition filed under Section 163 A or Section 166 of the Motor Vehicles Act, 1988 inter alia in terms of Section 149(2)(a)(ii) of the said Act - Breach of policy condition, e.g. disqualification of driver or invalid driving licence of the driver, have to be proved to have been committed by the insured for avoiding liability by the insurer – For avoiding its liability towards insured, mere absence, fake or invalid driving licence or disqualification of the driver for driving at the relevant time, are not in themselves available defences, the insurer has also 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 - Insurance companies must not only establish the available defence(s) raised in the said proceedings but must also establish 'breach' on the part of the owner of the vehicle to avoid liability
