United India Insurance Company Ltd. Vs. Lehru
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Head Note
Motor Vehicles Act,1988 - Section 147 , Section 149
Liability of insurer - Driving licence - Fake driving licence - Liability of Insurance Company - Theft of vehicle - Mere fact that at the time of accident the person driving the vehicle was not holding any valid driving licence is not enough for the insurance Company to avoid its liability - If a thief of insured vehicle commits an accident and found having no valid driving licence, the insurance Company is not expected to take such a plea against the scheme of the Act and public policy.
Motor Vehicles Act,1988 - Section 147 , Section 149
Liability of insurer - Fake driving licence - Liability - Breach of contract by owner of insured vehicle must be established by the insurance Company to avoid its liability with regard to third party claim - Proviso to sub-sections (4) & (5) to Section 149 are very clear that the Insurance Company has to first pay third party claims but it may lateron recover from the person who was primarily liable to pay - Sub- section (7) does not give any additional right to the insurance Company except the limited grounds set out in sub-section (2) - The insurance Company can recover from the owner only if it is proved that the vehicle was knowingly and intentionally handed over to a driver not holding any valid licence to drive such vehicle - If the licence held by the driver seem to be valid on the face of it, the owner is not expected to make a roving inquiry to find out its validity - Without proving knowledge and intention of the owner, breach of conditions of policy cannot be attributed to the insured.
Topic(s)-Fake driving licence , Liability of insurer
Important Decision(s)- Fake driving licence - Insurance Company has to first pay claims lateron - The insurance Company can recover from the owner only if it is proved that the vehicle was knowingly and intentionally handed over to a driver not holding any valid licence to drive such vehicle.