Liability of Insurance Company to pay First – While protecting the rights of the claimants by asking the insurance company to deposit the amount, the recovery of the same from the insured would follow as the sympathy can only be for the victim of the accident -- Right which has to be protected, is of the victim and not the owner of the vehicle.

(SC) Decided on: 23.09.2020

Invalid driving license – Breach of policy – Onus of proof – Driving license issued to less than 18 years of age in contravention of the provisions of Section 4 of Act, 1988 – Driving licence was renewed for the first time only after the accident had taken place – License was invalid at the time of its issuance -- Renewal is of no consequence – Driver is son of the owner – It cannot said that appellant-father was not in knowledge about the fact that his son obtained driving licence when he was underage -- Insurer discharged his burden by establishing that appellants intentionally committed breach of insurance policy – Recovery rights given by Tribunal to Insurance company – Appeal by owner/driver dismissed.

(P&H HC) Decided on: 29.06.2020

Package/comprehensive policy -- Vehicle was used for hire or reward in violation of policy conditions – Insurance Company’s liability to pay compensation to the claimants -- As per the policy, vehicle was insured for own damage as well as third party – Held, the insurance company cannot escape liability to pay compensation to the claimants -- At the same time, since the insured is guilty of violating the terms and conditions of the policy, the insurance company shall be entitle to have right of recovery against the insured after payment of compensation to the claimants. Balakrishnan’s case 2013 ACJ 199 relied.

(P&H HC) Decided on: 14.11.2019

Gratuitous Passengers in Goods Vehicle – Liability of Insurance Company -- Claimants are young children who have suffered permanent disability -- Principle of “pay and recover” should be invoked – Insurance company shall pay the compensation to the claimants and shall have the right to realize the said amount of compensation from driver and owner of the vehicle.

(SC) Decided on: 09.08.2019

Minor driver – Recovery right to Insurance Company -- Employed driver gave the vehicle to minor without consent of the owner – Effect of – Insurance Company was not given right to recover the compensation amount from the owner by the M.A.C.T. – Order upheld.

(P&H HC) Decided on:16.05.2019

Liability of insurance company -- Even assuming that the insurance company was not liable to pay compensation, as the offending tractor was duly insured, the insurer would be still liable to pay the compensation amount in the first instance with liberty to recover the same from the owner of the vehicle. National Insurance Co.’s case 2004 (3) SCC 297 relied.

(SC) Decided on : 28.03.2018

Driving license – Authorization to drive -- Onus of proof – Liability of insurance company -- Owner of the offending vehicle merely raised a vague plea in the Written Statement that the offending vehicle was being driven by a person having valid driving licence -- Without disclosing the name of the driver in the Written Statement or producing any evidence to substantiate the fact that the copy of the driving licence produced in support was of a person who, in fact, was authorised to drive the offending vehicle at the relevant time, the owner of the vehicle cannot be said to have extricated himself from his liability -- Insurance Company would become liable only after such foundational facts are pleaded and proved by the owner of the offending vehicle -- To subserve the ends of justice, the insurer shall pay the claim amount awarded by the Tribunal to the appellants in the first instance, with liberty to recover the same from the owner of the vehicle in accordance with law.

(SC) Decided on : 19.01.2018

Gratuitous passengers – Liability of insurance company – Victim was travelling in offending vehicle as "gratuitous passenger" – Insurance Company is directed to pay the awarded sum to the claimants and then recover the said sum from the insured in the same proceedings by filing execution application against the insured. Saju P. Paul’s case (2013) 2 SCC 41 relied.

(SC) Decided on: 21.02.2017

Fake driving licence – Duty of owner – L.M.V. licence – Meaning of -- Owner pleaded that she had checked the driving licence of the driver and along with her husband took the test of his driving skills, which were found to be perfectly upto the mark -- However, there is nothing on record beyond the statement in this regard -- There is nothing on record to suggest that the owner had taken any steps to verify the genuineness of the driving licence of driver of the offending vehicle -- From the testimony of official of the said authority and from the record on file, it is duly proved that the licence in question is a fake document – Licence in question is valid for motorcycle and light motor vehicle and as per the definition of the Light Motor Vehicle as mentioned in Section 2(21) of the Motor Vehicle Act, 1988, the weight of the vehicle which comes under the ambit of light motor vehicle does not exceed 7500 kgs, but in this case, the weight of the offending vehicle is 8800 kgs. – No fault can be found with the approach of learned Tribunal while granting recovery rights to the insurance company.

(P&H HC) Decided on: 30.05.2016

No fault liability – Liability of Insurance Company with recovery rights -- In case of death in an accident arising out of the use of a motor vehicle, the legal heirs of the deceased are entitled to Rs.50,000/- as compensation for liability without fault -- It has been made Rs.50,000/- by Amending Act No.54 of 1994 with effect from 14.11.1994 from Rs.25,000/- -- Accident occurred earlier to 1994 i.e. on 23.6.1991 – Rs.25,000/- is liable to be granted to the appellants -- Though the liability of the Insurance Company as per its policy is limited to Rs.20,000/-, however, it is liable to pay the entire amount and recover the excess amount from the insured.

(P&H HC) Decided on: 06.05.2015

License of Light Motor Vehicle – Driver had a licence to drive ‘light motor vehicle’ but failed to obtain endorsement for driving goods vehicle – No breach of any condition of insurance policy, entitling the Insurance Company to recovery rights.

(SC) Decided on: 28.10.2014

Invalid driving license – Owner has a duty to see that a vehicle is driven by a person having a valid driving licence – Driver’s license was proved to be invalid -- Owner did not raise any contention that he has used due diligence in allowing the driver to drive the vehicle -- Appellant/ Insurance Company was directed to deposit the amount directing that the company may recover the same from respondent Nos.3 (Driver) and 4 (owner) – Executing Court dismissed Execution application being not maintainable, however Insurance Company was given independent right to recover the amount from insured (Owner and Driver) as per award through regular civil suit – High Court affirmed the order – Held, it would be travesty of justice, if the Insurance Company which is directed to pay the amount and then face immense difficulties in executing a decree -- Impugned judgments cannot be sustained -- Appeals are allowed, the executing courts are directed to proceed with the execution and dispose of the same as expeditiously as possible.

(SC) Decided on: 04.08.2009