ORIENTAL INSURANCE CO. LTD. versus ZAHARULNISHA & ORS.

ORIENTAL INSURANCE CO. LTD. versus ZAHARULNISHA & ORS.

Insurer is not liable to pay compensation for accident where driver did not hold valid licence for the class of vehicle driven, in violation of Section 10(2), Motor Vehicles Act, 1988; however, insurer must pay compensation amount to claimants and may recover it with interest from the owner of the vehicle.

Parties
Appellant: Oriental Insurance Co. Ltd.; Respondents: Zaharulnisha & Ors.; Owner of the Vehicle/respondent No. 8: Vakilrao
Jurisdiction
India
Judgment Date
29 April 2008
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal partly allowed
Legal Topics
Liability of Insurer Under Motor Vehicles Act, Compensation for Road Accident, Effect of Invalid Driving Licence
Motor Vehicles Law Insurance Law Tort Law Liability of Insurer Under Motor Vehicles Act Compensation for Road Accident Effect of Invalid Driving Licence

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Parties

Oriental Insurance Co. Ltd.

Appellant

Zaharulnisha & Ors.

Respondents

Vakilrao

Owner of the Vehicle/respondent No. 8

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the insurer is liable to pay compensation when the driver did not hold a valid licence for the class of vehicle driven at the time of accident

Ratio Decidendi

Insurer is not liable to pay compensation for accident where driver did not hold valid licence for the class of vehicle driven, in violation of Section 10(2), Motor Vehicles Act, 1988; however, insurer must pay compensation amount to claimants and may recover it with interest from the owner of the vehicle.

Court Disposition

Appeal partly allowed

Orders

  • Oriental Insurance Co. Ltd. to satisfy the compensation award to the claimants.
  • Insurer given liberty to recover the awarded amount with interest from the vehicle owner (respondent No. 8).