Calcutta High Court affirms insurance company’s liability in motor accident case with invalid drivers license [Read Judgment]

Kolkata: The Calcutta High Court has delivered a significant judgment in a motor accident case, emphasizing the responsibility of insurance companies and vehicle owners when a driver operates a vehicle with an invalid license.

Calcutta High Court’s Landmark Ruling on Insurance Liability in Motor Accident Cases

Justice Ajay Kumar Gupta addressed a case involving a fatal accident that occurred on January 23, 2008, where a tractor struck and killed a victim on G.T. Road.

Invalid Driver’s License: What the Motor Vehicles Act Says About Compensation and Accountability

The court highlighted critical findings, noting that the driver’s license was invalid at the time of the accident. Regional Transport Office (RTO) records showed that the driver’s license had expired on January 6, 2006, while the accident occurred on January 23, 2008.

The court observed:

“Furthermore, when the driving licence is not valid on the date of accident, it constitutes a violation of the terms and conditions of the insurance policy by the owner of the offending vehicle by allowing such driver to drive the vehicle without valid licence.”

Referencing previous Supreme Court judgments, the court ruled that in such scenarios, the insurance company is required to pay compensation to the claimants, with the liberty to subsequently recover the amount from the vehicle owner.

The court rejected the vehicle owner’s arguments, particularly noting that while the owner claimed the license was renewed, no documentary evidence was produced to substantiate this claim.

Justice Gupta emphasized that the Motor Vehicles Act is a socially beneficial legislation, prioritizing compensation for victims in such circumstances.

The court further directed the National Insurance Company to deposit a total compensation of Rs. 3,93,500 along with interest, to be distributed among the claimants through the High Court’s Registrar General.

Case Title: Sri Barun Mukherjee and Another vs National Insurance Company Limited & Others
 

[Read Judgment]