NIRMALA KOTHARI versus UNITED INDIA INSURANCE CO. LTD.

NIRMALA KOTHARI versus UNITED INDIA INSURANCE CO. LTD.

The insurer failed to prove that the appellant was guilty of willful negligence or did not take reasonable care in employing the driver; the appellant had checked the driver’s licence and the driver appeared competent, and absence of record of the licence at the licensing authority was not sufficient to relieve the insurer of liability under the policy. Therefore the insurer is liable to indemnify the appellant.

Parties
Appellant: Nirmala Kothari; Respondent: United India Insurance Co. Ltd.
Jurisdiction
India
Judgment Date
04 March 2020
Procedural Posture
Civil Appeal / Appeal to Supreme Court From National Consumer Disputes Redressal Commission Order Dated 06.02.2018 (revision Petition Nos. 2835 of 2015 and 3053 of 2016)
Outcome
Appeals allowed; impugned judgment set aside
Legal Topics
Driving Licence Validity, Breach of Insurance Policy Conditions, Insurer Liability, Standard of Care When Hiring Drivers
Motor Vehicles Insurance Consumer Protection Driving Licence Validity Breach of Insurance Policy Conditions Insurer Liability Standard of Care When Hiring Drivers

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Parties

Nirmala Kothari

Appellant

United India Insurance Co. Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal to Supreme Court From National Consumer Disputes Redressal Commission Order Dated 06.02.2018 (revision Petition Nos. 2835 of 2015 and 3053 of 2016)

Legal Issues

  1. 1 What is the extent of care/diligence expected of an employer/insured while employing a driver?
  2. 2 Whether insurer is liable when driver possessed an invalid or fake driving licence at time of accident
  3. 3 Which party bears the onus of proof to establish breach of policy conditions under Section 149(2)(a)(ii)?

Ratio Decidendi

The insurer failed to prove that the appellant was guilty of willful negligence or did not take reasonable care in employing the driver; the appellant had checked the driver’s licence and the driver appeared competent, and absence of record of the licence at the licensing authority was not sufficient to relieve the insurer of liability under the policy. Therefore the insurer is liable to indemnify the appellant.

Court Disposition

Appeals allowed; impugned judgment set aside

Orders

  • Appeals allowed
  • Impugned judgment set aside