The Gujarat High Court, in a judgement,has held that the driver of the vehicle,who does not held a valid licence on the date of the accident, can not be held liable for compensation to the insurance company.
According to the case, the motorcycle driver had collided with a vehicle As a result,he suffered serious injuries. The motorcyclist had demanded a compensation of₹3,00000 under the Moter vehicle Act. The insurer argued that the driver of the infringing vehicle did not have a licence. The Tribunal had found that the driver had a licence. which was released in 1992 for a light motor vehicle and in 1997 for an auto rickshaw. Its validity expired in 2008. The licence was not renewed. The accident happened in 2009, more than one year after the expiry of the validity of the licence.
The tribunal ruled that the licence was not revoked And the insurance company was ordered to pay compensation. The tribunal had awarded on of amount of 88,300 along with interest of 7.5 percent to the claimant from the date of filing the claim petition till its receipt.
The order of the tribunal was challenged by the insurance company in the Gujarat High Court.
Justice R.M.Chhaya ruled contrary to the tribunal. The court said that the insurance company will not be responsible for the loss caused by the expiry of a valid licence. The court said that as per the motor vehicle Act it was clear that 30 days benefits is given in case the licence expires. But in the present case one year had elapsed yet the licence was not renewed.
Tags
accident claim
compensation
Gujarat High Court
insurance company
tribunal
valid driving licence