Case Note & Summary
The case arises from a motor accident claim where the deceased, Sangar Bashir Amadbhai, died in a collision between his motorcycle and a Bolero vehicle on 11.04.2016. The claimants filed MACP No.333 of 2016 before the Motor Accident Claims Tribunal (Main), Kachchh-Bhuj, which awarded compensation. The insurance company, IFFCO Tokio General Insurance Co. Ltd., appealed against the award, arguing that the driver of the offending Bolero (Registration No. GJ-12-CG-8312) did not hold a valid driving licence at the time of the accident, as evidenced by the charge-sheet (Exhibit 37). The appellant contended that the Tribunal erred in saddling the insurer with liability despite this violation of Section 3 of the Motor Vehicles Act, 1988. The court, after hearing the parties, allowed the appeal, holding that the insurance company is not liable to pay compensation due to the driver's lack of a valid licence. The judgment and award of the Tribunal were set aside, and the appeal was allowed.
Headnote
A) Motor Accident Claims - Insurance Liability - Driving Licence - Section 3 Motor Vehicles Act, 1988 - The issue was whether the insurance company is liable to pay compensation when the driver of the offending vehicle did not possess a valid driving licence. The court held that the insurance company is not liable as the driver violated Section 3 of the Motor Vehicles Act, 1988, and the charge-sheet (Exhibit 37) clearly stated that the driver was driving without a valid licence. The Tribunal's award saddling the insurer with liability was erroneous and contrary to settled principles of law. (Paras 1-6)
Issue of Consideration
Whether the insurance company can be held liable to pay compensation when the driver of the offending vehicle was not holding a valid and effective driving licence at the time of the accident, in violation of Section 3 of the Motor Vehicles Act, 1988.
Final Decision
The appeal is allowed. The judgment and award dated 11.02.2022 passed by the Motor Accident Claims Tribunal (Main), Kachchh-Bhuj in MACP No.333 of 2016 is set aside. The insurance company is not liable to pay compensation.
Law Points
- Insurance company liability
- driving licence requirement
- Section 3 Motor Vehicles Act
- 1988
- violation of policy condition
- exoneration of insurer
Case Details
2026 LawText (GUJ) (01) 225
R/FIRST APPEAL NO. 1905 of 2022
MR. ALKESH N SHAH for the Appellant, MR.HIREN M MODI for the Defendants
IFFCO TOKIO GENERAL INSURANCE CO.LTD.
SANGAR AMADBHAI MUSABHAI & ORS.
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Nature of Litigation
First appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition for compensation arising from a fatal motor accident.
Remedy Sought
The appellant insurance company sought to set aside the Tribunal's award saddling it with liability, on the ground that the driver of the offending vehicle lacked a valid driving licence.
Filing Reason
The insurance company appealed because the Tribunal held it liable despite the driver of the offending vehicle not having a valid driving licence at the time of the accident.
Previous Decisions
The Motor Accident Claims Tribunal (Main), Kachchh-Bhuj, passed judgment and award dated 11.02.2022 in MACP No.333 of 2016, awarding compensation and holding the insurance company liable.
Issues
Whether the insurance company can be exonerated from liability when the driver of the offending vehicle did not possess a valid driving licence at the time of the accident.
Submissions/Arguments
The appellant argued that the Tribunal erred in saddling the insurance company with liability, ignoring that the driver of the offending Bolero was not holding a valid and effective driving licence, as per the charge-sheet (Exhibit 37), violating Section 3 of the Motor Vehicles Act, 1988.
Ratio Decidendi
An insurance company is not liable to pay compensation in a motor accident claim if the driver of the offending vehicle was not holding a valid and effective driving licence at the time of the accident, as this constitutes a violation of Section 3 of the Motor Vehicles Act, 1988 and a breach of policy conditions.
Judgment Excerpts
The charge-sheet produced at Exhibit 37 clearly states that the driver of the said Bolero was driving the vehicle without a valid and effective licence, thereby violating Section 3 of the Motor Vehicles Act.
Hence, the judgment and award passed by the learned Tribunal are erroneous and contrary to the settled principles of law.
Procedural History
The claimants filed MACP No.333 of 2016 before the Motor Accident Claims Tribunal (Main), Kachchh-Bhuj, which passed judgment and award on 11.02.2022. The insurance company appealed against that award by filing First Appeal No.1905 of 2022 before the High Court of Gujarat at Ahmedabad. The High Court heard the appeal and delivered judgment on 13.01.2026.
Acts & Sections
- Motor Vehicles Act, 1988: Section 3
