Appeal Allowed: Insurance Company Liable for Compensation in Vehicle Accident Case.


29 February 2024 Motor Accident >> Family Law  

In this case of Niranjani Chandramouli v/s Amit Ganpathi Shet & Another, the Appellant, the owner of the offending vehicle, appealed against the Motor Accident Claims Tribunal's (Tribunal) decision, which had exonerated the Insurance Company from paying compensation due to the driver holding a Heavy Goods Vehicle (HGV) license while driving a Light Motor Vehicle (LMV) at the time of the accident.

The Tribunal had ruled that the driver’s HGV license was not valid for operating an LMV, leading to a breach of the insurance policy's terms and conditions. Therefore, it directed the Insurance Company to pay compensation to the claimants and recover the amount from the vehicle owner.


 

 

The Appellant contended that despite the distinction between HGV and LMV licenses under the Motor Vehicle Act, holding an HGV license should not disqualify the driver from operating an LMV, especially after gaining experience in driving an LMV. The Appellant argued that the Tribunal's order was erroneous.

The Respondent-Insurance Company supported the Tribunal’s decision, citing legal provisions that require a valid license for the specific category of vehicle being driven.

After reviewing the case, the Court concluded that possessing an HGV license and driving an LMV did not automatically violate the Terms and Conditions of the insurance policy. It emphasized that, under the Motor Vehicle Act, a person holding an HGV license, having prior experience in driving an LMV, should not be deemed ineligible to drive an LMV. Therefore, the Court overturned the Tribunal's decision and ruled that the Insurance Company was liable for the compensation amount.

In conclusion, the appeal was allowed, and the Insurance Company was instructed not to recover the compensation from the vehicle owner. The Appellant was permitted to withdraw the statutory deposit along with interest.


Motor Vehicles Act, 1988