AI Drafter 
TaxTMI 
TaxTMI 
1996 (10) TMI 515
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion of Rs. 5 lacs for the death caused by rash and negligent driving from the insurance company, the owner and the driver on account of their statutory as well as tortious liability. A compensation of Rs. 2,59,200/- with 12% P.A. interest was awarded to the claimants against the owner, driver and the appellant insurance company jointly and severally. The owner was held liable for tortious act of his driver a employee vicariously. 4. The driver and owner of the truck jointly defended the claim, by putting a common defence, inter-alia, denying the occurrence, taking the plea of alibi and putting the case to be of their false implication. 5. The appellant insurance company demurred, inter-alia, on the pleas of defective verification, bar of limitation, vagueness of the petition, non-disclosure of cause of action, contravention of the provisions of Motor Vehicles Act and filing of the petition to defraud the appellant. The validity of the driving licence of the respondent-driver was denied. In addition to the above pleas, the pleas taken by the owner and driver were also put up, 6. The Tribunal found, the deceased was killed on account of rash and negligent driving of the abo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ve, or constitutional are aimed at setting up a society governed by rule of law, which postulates as understood by a common man of ordinary prudence, justice to all and individual concerned it is required from constitutional functionaries with foreseeability, to provide justice to individuals, though may not at the cost of the society at large, Justice has to be practical, responsible to realities of situation. 10. If I may venture to say the Legislation always presumed to have provided for disciplined conduct of a person over whom the individuals citizens have no control. Further, it cannot be said that a person having a right can be left high and dry by not providing for remedy by legislation of its enforcement. 11. At this stage, I may hasten to add, that one of the objects of all laws much less common laws is to adjust or solve the difficulties, adjust the just relations in the social and commercial life by judicial process, by further giving a meaning to the statutory provisions for meeting the set of facts usual and unusual normal and abnormal, growing with the national development, required to be met from the demands of expanding society and laws, failing to do so may ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to third party i.e. the road users and the third provides for rights of third party against the delinquents i.e. owner, driver and the insurer. 13. From a close look of the material provisions of the Act, it would be apposite to refer to law relating to issuing of the driving license as a preventive measure, as it manifests from the statutory provisions, thus; No person is allowed to drive a motor vehicle in a public place without holding an effective valid driving licence issued by a duly authorised competent authority. No one can permit or authorise any person to drive without having an effective valid driving licence. Neither the holder of a driving licence nor any other person shall permit the use of his driving licence by another person Driving licence can be issued only by a duly authorised competent authority to a person above the age of 18 years and that also if one is not disqualified for holding or obtaining it, and passes the test of competence to drive; provided further that he ordinarily resides within the territorial jurisdiction of the appropriate authority. Driving licence can be issued to a person for a specified period. Test for competence to drive is the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....- "15. Renewal of driving licences:- Any licencing authority may, on application made to it, renew a driving licence issued under the provisions of this Act, with effect from the date of its expiry. Provided that in any case where the application for the renewal of a licence is made more than thirty-days after the date of its expiry, the driving licence shall be renewed with effect from the date of its renewal. Provided further that where the application is for the renewal of a licence to drive a transport vehicle or where in any other case, the applicant has attained the age of forty years, the same shall be accompanied by a medical certificate in the same form and in the same manner as is referred to in Section (3) of Section 8 and the provisions of Sub-Section (4) of Section 8 shall, so far a may be, apply ;a relation to every such case as they apply in relation to a learner's licence. xx xx xx xx xx (6) Where the authority renewing the driving licence is not the authority which issued the drivi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce be ascertained by them in the prescribed form is provided by Section 133 of the Act. Recent years have seen general and considerable .extension, of practice of insurance against various form of liabilities which the iusurer may incur to third party providing principaly the social security, the third party risk, insurance in respect of claims for damages caused to third party i.e. road-users by the owner or driver's motor vehicles, provided for compulsory insurance of the vehicle. 21. In consonance with the object of providing social security, protection to the road users as a preventive measure and remedy to a person who suffered at the hands of third person on whom one has no control provided by Chapter XI of the Act for insurance of motor vehicles against third persons. 22. It would be expedient at this stage to notice the scheme of the insurance under the act against third party risk. Persons have been debarred from using or permitting to use any motor vehicle in public-place unless there is in force in relation to the use of vehicle by the person or other persons, a policy of insurance complying with the requirements of Chapter XI of the Act. 23. The relevant....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rson or classes of persons specified in the policy to the extent specified, in Sub-section (2)- (i) against any liability which may be incurred by him in respect of the death, of or bodily injury to any person including owner of the goods or his authorised representative carried, in the vehicle or damage to any property of a third party caused by or arising out of the use of the vehicle in a public place; against the death of or bodily injury to any passenger of a public service vehicle caused by or arising out of the use of the vehicle in a public place: Provided that a policy shall not be required - (1) to cover liability in respect of the death, arising out of and in the course of his employment of the employee of a person insured by the policy or in respect of bodily injury sustained by such an employee arising under the Workmen's Compensation Act 1923 (8 of 1923) in respect of the death of, or bodily injury to any such employee - (a) engaged in driving the vehicle or (b) if it is a public service vehicle engaged as a conductor of the vehicle or in examining tickets on the vehicle or (c) if it is a goods carriag....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ect of any liability which the policy purports to cover in the case of that person or those classes of persons. The statutory duty or liability of the insurer against the persons insured is provided by Section 149 of the Act, which runs thus :- "149. Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks:- (1) If, after a certificate of insurance has been issued under Sub-section (3) of Section 147 in favour of the person by whom a policy has been effected, judgment or award in respect of any such liability as is required to be covered by a policy under Clause (b) of Sub-section (1) of Section 147 (being a liability covered by the terms of the policy) or under the provisions of Section 163A, is obtained against any person insured by the policy then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to the provisions of this section, pay to the person entitled to the benefit of the decree any sum not exceeding the sum assured payable thereunder, as if he were the judgment debtor in respect of the liability together with any amount pa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ciprocating country) shall be liable to the person entitled to the benefit of the decree in the manner and to the extent specified in Sub-section (1), as if the judgment were given by a Court in India. Provided that no sum shall be payable by the insurer in respect of any such judgment unless, before the commencement of the proceedings in which the judgment is given, the insurer had, notice through the Court concerned of the bringing of the proceedings and the insurer to whom notice is so given is entitled under the corresponding law of the reciprocating country, to be made a party to the proceedings and to defend the action on grounds similar to those specified in Sub-section (2). (4) Where a certificate of insurance has been issued under Sub-section (3) of Section 147 to the person by whom a policy has been effected, so much of the policy as purports to restrict the insurance of the persons insured thereby by reference to any conditions other than those in Clause (b) of Sub- section (2) shall, as respects such liabilities as are required to be covered by a policy under Clause (b) of Sub-section-(l) of Section 147, be of no effect; Provided that any sum ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cur to third parties, then- (a) in the event of the person becoming insolvent or making a composition or arrangement with his creditors, or (b) where the insured person is a company in the event of a winding up order being made or a resolution for a voluntary winding up being passed with respect to the company or of receiver or manager of the company's business or undertaking being duly appointed or of possession being taken by or on behalf of the holders of any debentures secured by a floating charge of any property comprised in or subject to the charge, if, either before or after that event, any such liability is incurred by the insured person, his rights against the insurer under the contract in respect of the liability shall, notwithstanding anything to the contrary in any provision of law, be transferred to and vest in the third party to whom the liability was so incurred. (2) Where an order for the administration of the estate of a deceased debtor is made according to the law of insolvency, then, if any debt provable in insolvency is owing by the deceased in respect of a liability to a third party against which he was insured under a co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....may be made to . (iv) The intention of the Legislature is to be gathered from the particular Act under consideration. Whether a particular rule applied in a particular case depends upon the purview of legislation and the language employed, (v) it is the pith and substance of the legislation which has to be taken into consideration and not the isolated words, bereft of context and the text in which they are used, with reference to the object of the same, the object of provisions, malice intended to be remedied and edifice of the provisions contained in the Act; (vi) The words used in the Act are not to be applied literally. The facts cannot be sacrificed to phrases invalidating of a situation; (vii) No interpretation can be put which turns out to be so unfair that words used by the legislation could not have been intended to mean what they might appear to say; (viii) By interpretation process, unfair or draconian result should not be produced; (ix) While resorting to interpretation of Statute, what reasonable person would think of a statute to mean and follow them, cannot be lost sight of; (x) While interpreting the law enacted for public at large involving social justice, and socia....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uld be expedient to notice the conspectus of law emerged from the judgments of Hon'ble the Supreme Court and High Courts cited at the Bar. i) The act of insurance is not a private legislation and bargain between the employer and employee but a public Act based in favour of third person to compel the owner of the vehicle to reimburse the sufferer, provided protection to the third person i.e. the road users as is obvious and appears from the whole purview and intention of the legislation was the only remedy for breach of statutory duty, should not be only fine rather on the construction of statute. It can be inferred that the person injured by breach of the statute has a right to recover damages from the one committing it. ii) Insurer can undertake to cover the risk beyond that provided by the Statute or the limits by entering into a special contract; iii) The Statute provides defence to the insurer; iv) No insurer is entitled to avoid his liability or benefits of the judgment to any person other than the one provided by the Statute i.e. Section 149 of the Act; v) Where the insured has done everything within his power, it cannot be sai....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hazards of negligent drivers. To hold otherwise, would render the object of compulsory insurance, the risk of third party as negatory. xi) Insurance companies were held liable where drivers once hold the licences and are not disqualified. xii) The exclusion clause for payment as well as the provisions of the Act, has to be read down in order to achieve the main purpose of the provisions enacted, for the protection of the victims of the accidents so that the promisor is exculpated when he does everything in his power to keep the promise; xiii) With respect to public policy, which the Act, is expected to meet, has been spelled out thus: The Legislature with unworkability and froth with several unsurmountable operational threats keeping in view the third party i.e. users of the road in the jungle of roads made the vehicles in the form of lethal weapons let loose as a public policy created, an agency of insurance to discharge the State duty towards the public through the insurance company. Thus conferring its own duty on the insurer giving the words its ordinary natural meaning to the Statute. It would be reasonable to infer and justi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he tortfeaser. It is the State's duty to protect the public or individuals and ensure their safety and security, It is nothing else but to fulfil the public dream provided by Article 21 of the Constitution of India. (xiv) The object of common law is to solve difficulties and just relations in the social and commercial life, meeting all set of facts usual or unusual, normal or abnormal growing with the national development. Dealing with the changing and noval circumstances, meeting the demands of expanding society and common law is the call of the day. Failure to do so will be nothing else but, failure of the rule of law. 28. Reference may be made to Skandia Insurance Co. Ltd. v. Kokilaben Chandravadan and Ors. 1987 91 P.L.R. 665; Narcinva V. Kamat and Anr. v. Alfredo Antonio Doe Martins and Ors.Padma Srinivasan v. Premier Insurance Company Ltd., 1982 ACJ 191; Lalappa Lingappa v. Laxmi Vishnu Textile Mills, AIR 1981 S.C. 852 ; Rudul Sah v. State of Bihar and Anr., AIR 1983 S.C. 1086 and B.V. Nagaraju v. Oriental Insurance Co, Ltd, Divisional Office, Hassan. 29. I may hasten to add that conceptually, it has been observed in innumerable cases rather it has ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the same time compensating the victims of the loss suffered, in order to fulfill the society's duty to individual, as the exigencies of social justice, envisage bearing of loss by creating a liability of the insurance and provided statutorily the third party insurance by the Motor Vehicles Act. The object of statutory and compulsory insurance under the Act is not only bereft of profit motive by the insurance companies but is also a step towards owning the responsibility by the society with respect to road victims. 31. It provides absolute liability of the insurance company wherein one is not liable for conduct but for the event. I may hasten to add that insurance policy under the Motor Vehicles Act is a blanket security to the road users. It can be termed as national or society's obsession by any civilized society. In public interest, it is only the mode of protection to the road users or to the road traffic. It is in consonance with achieving of primary purpose, victims and wrong doers, legitimate expectation with one's right and liabilities in the expanding role of legislation. It is a step forward for providing social justice that apart from the liability incurre....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... his right in equity, justice and good conscience. Basically or inherently, it is a contract to protect promisee of anticipated loss. The insurer or insurance-company or indemnifier is liable to reimburse the insured which he is required to pay to third person out of liability arising out of tort or statute, providing the promisee to act prudently, bonafidely and did not contravene the specific order of promisor. As observed earlier, reading of various text books one can infer that widening of liability both at common law and statutory law has led to this development of insurance, which infact spread loss on those lest able to bear it. It satisfies the social need, the need to compensate the victims to protect him against the impecunious dependent as road activities are prolofic sufficient of injuries and insurance is compulsory. It is aimed at the protection of public by providing that there should be body of insurer behind the driver to prevent crushing financially the owner and the driver, as obviously the company would not insure unless there is assurance of adequate precautions likely to be taken. It has been observed by Lord Denning J. "That there should be absolu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d, of the third party. It has been statutorily provided vide Section 147 of the Act, the conditions which can be imposed while issuing the policy of insurance against third party risk i.e. not withstanding any other thing contained in law, the insurer is bound to indemnify the persons specified in the policy of course, I may hasten to add that the company would be entitled to notice about hearing of claim. It could put only those defences which have been statutorily provided or permitted and later incorporated in the policy of insurance. Most relevant one to answer the questions raised is with respect to driving by an un-licenced driver. It has been made incumbent rather mandatory to reimburse the third person/party in spite of the fact that insurer's right to avoid or cancell the policy, subject to the extent of amount insured. 39. Quintessence provided by Section 149(2) of the Act for absolving the insurer of its liability i.e. when the insurer had no notice from Court or the Tribunal of the proceedings initiated by the claimants. The insurance company has got a right to defend its liability in the proceedings on the grounds specifically statutorily provided. Since the rig....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ay not be crushed economically on account of an accident having occurred at his hands. In a sense the liability of the insurance company introduced by the statutory provisions as emerged from the desire of the Legislation is for providing social security to the victims of the road accidents. 42. The liability of the insurance company is an absolute liability as understood by common law i.e. where one is not liable for the conduct but for an event. As is the case in hand, the insurance company is liable to the third party to reimburse or compensate for the damage suffered on account of injuries caused by the use of a motor vehicle by its rash and negligent driving. It was observed, by Hon'ble the Supreme Court in Skandia Insurance Co. 's case (supra) while dealing with the question whether a person who is not duly licenced by itself exonerates the insurance company from the liability, after noticing the facts and circumstances of the said case, neither owner committed any breach of the policy conditions of insurance nor violated the contractual conditions embodied in the policy and the condition which excludes driving by a person not duly licenced is not absolute and prom....
X X X X Extracts X X X X
X X X X Extracts X X X X
....promisor must be wilful infringement or violation. Reference be made to Skandia Insurance Co It was observed that if the insured is not at fault and has not done or is not amiss in any respect, how can it be conveniently posted the he had committed a breach. It requires the insurance company to establish that it was the insured who was guilty of violating the promise or infringement of the contract. It was further laid down that to construe the provisions differently, would be to rewrite the provisions by engrafting a rider to the effect that in the event of a motor vehicle happened to be driven by an unlicenced person regardless of the circumstances in which such contingency occurred, the insured or insurer will not be liable under the contract. It is the statutory provisions defining the conditions of exemption which was interpreted and observed that must be interpreted for which the same has been enacted accompanied by anxiety of the claimant that protection is not nullified by the back looking interpretation which serves to defeat the provisions rather than fulfil its life. Otherwise, it would be nullifying the benevolent provisions and purpose and philosophy of the Legislature....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e. It is an accepted principle of indemnity or corollary to principles of indemnity without abrogating one's right inherent in the contents of indemnity. The natural effect of the same is that insurer is entitled to be placed in the position of insured. The insurer is entitled to all the rights and remedies against third person with respect to the subject matter of insurance. The contract of motor insurance is an essence for all intents and purposes of the indemnity and particularly to the third person. The insurer is liable to reimburse the third party on account of the loss caused by him. The right of the third party insurance does not only follow from the policy, the contract and statutory provisions of law, but it follows on the basis of right in justice, equity and good conscience. 46. As observed in the earlier part of the judgment, the Legislation is alive to its duty towards third party as the liability of the insured for whom it was made incumbent to insure the vehicle statutorily specifying the defences on which they could defend their liability to pay as provided by Section 149 of the Act. The relevant part of Section 149(2) provides the situation when no sum shal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....th the statutory provisions of law. The insurer ordinarily cannot refuse to indemnify the insured particularly when the insured is not guilty of deliberate breach. The observations made above find further strength when the Statute has taken steps advanced towards providing of compensation in case of hit and run. Breach of conditions by a driver or of any statutory rules or provision by itself can be taken as breach on the part of the insured. 49. The conspectus of law enumerated above in the earlier part of the judgment particularly to the effect that insurance company cannot be absolved of its liability merely on the proof that conditions envisaged by Section 147 have not been taken care of by the facts and circumstances of the case. The insurer cannot absolve itself from its liability particularly to the third party 50. It is incumbent upon the insurance company to further ensure that violation or non-compliance of the conditions either of the policy or of the provision of Section 147 equated to old Section 96-B(i)(ii) of the Act, was a wilful infringement. In order to meet the exigency of the object of the Act and public interest the exclusion clause has to be read down in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ve driving licence issued by an authorised person to a person of qualifying age. It is the holder of the driving licence who was to ensure that it is he who alone uses the licence and no other person uses the same. It is for the State, in view of the penal clauses provided that no person drives a vehicle in a public place, without having duly issued a driving licence. That is the minimum expected from the state under the heading 'Duty and care to its public'. Ordinarily, a driving licence is to be issued by the competent authority within whose jurisdiction one ordinarily resides, after he passes the test as prescribed or if he fails within one of the exceptions provided for exemption from test. Under the amended provisions as prevalent today read with the rules framed thereunder, it is enjoined upon the' State to maintain a Register in the prescribed form for issuing of the driving licences. In case of licence to drive transport vehicles carrying goods of dangerous or hazardous nature, the same would be effective for a period of one year and renewal there of is necessary subject to the condition that the driver undergoes a refresher course. 53. Learned counsel for th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... or on the licence or fabrication of a driving licence is a criminal offence, which cannot be ratified. However, a criminal act may be ratified qua a civil liability provided the authority ratifying it has full knowledge and is conscious of the fact that the document having not been issued by a duly authorised person, ratifies it. A document not issued by a public officer duly authorised cannot be validated by the renewing authority inasmuch as the acts of the officers of the State should be backed by the statutory power conferred on a person to do a particular act. By referring to the Motor Vehicles Act, we find that no authority has power to validate a driving licence issued by an unauthorised person or fabricated document can not be validated by any authority under the Statute. As a natural corollary, if a licence issued by an unauthorised person cannot be validated, the same cannot be renewed by any stretch of imagination. Apart from this, a void document cannot be validated by its renewal. Renewal can be effected of a document or of an act which is preexisting. There cannot be a renewal of a non-existing document as a licence forged or fabricated or one issued by an unauthoris....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hoice' made by public body did an authority take reasonable care in believing it, It is of extensively pragmatic care i.e. was there an absence of negligence in exercise of statutory power? 59. Thus, I am of the considered view that it was the duty of the State to ensure that no body forges the State's documents and uses them. If any body does so and the State is unable to discover the same within reasonable time and any public man suffers any damage on account of tortuous act committed by such person, the liability of the State would be determined in appropriate case as and when it arises. We restrain ourselves from expressing any view with respect to the liability of the State to the person who suffers because of the forged document of the State, used by the forger. 60. Negligence as understood by a common man is an act where a person does not advert to consequences when as a reasonable man could have adverted to. It is blameworthy inadvertance to the consequences of conduct so far as a reasonable man would have adverted to them. It is in the social interest and in the interest of public. Otherwise too, it is also assumed that a man would act as a reasonable man and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ationship exists, the master took all reasonable steps to ensure that requirements of the Statute and the obligations imposed by the policy have been reasonably observed from the standard of a reasonable person. The insurer is bound to reimburse the insured which he is liable to pay to the third person the victim of the road hazards. Benefits have to go in favour of innocent sufferer or injured by the act of somebody who was employed by the defendant employer and who was seeking to further employer's interest, particularly when the employer is the ostensible authority who complied with the statutory requirements. It is the requirement of the public policy that an employee acting beyond his authority during the course of his employment is not only liable but the master too. The rights conferred under the Motor Vehicles Act are in addition to the rights under tort and not derogation of rights under torts. Public interest should be allowed to over-ride the private interest. Courts are duty bound to consider the rights of public. The Legislation never intended that damage should be done to innocent persons without redress. As observed above, in the earlier part of the judgment, the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed with a view to defraud the respondents. This claim is bogus, malafide, illegal in law". With respect to the driving licence, the plea raised runs in verbatim as under;- " That at the time of alleged accident, the truck No. HYW-6262 was not being driven by a person holding a valid driving licence nor he had ever held a valid driving licence". 65. Though the factum of accident with the above referred truck was denied yet a plea was taken that respondent Rajbir Singh driver was not driving the/ruck in the course of employment of the insured nor with his consent or permission. The factum of rash and negligent driving was denied. There is no reference even remotely with respect to the denial of the relationship of employer and employee between Rajbir Singh driver and respondent-owner. There is no reference either of denial or acceptance with respect to holding of a valid driving licence by the driver much less its validity. The vehicle being insured with the insurance company-appellant was asserted and was not denied. Respondent-driver appeared in the witness box as R.W.I and admitted himself to be in the employment of the owner of the truck. With reference to his driv....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... But Officers conveyed that against the D.L. No. R-9045 A/c Shri Rajbeer Singh, no record is available in their office. "issued without prejudice" Sd/- Surveyor" 67. I fail to comprehend that on the basis of said report of the surveyor and in the absence of an iota of evidence on record against the statement of driver on oath and in the absence of specific pleas with the particulars, one can assume that the non-availability of the record with respect to the above referred driving licence would amount to issuance of a fake driving licence; or the driving licence is forged; or the driving licence was not issued in the ordinary course of business. The maintenance of the record is not within the control of the holder of the licence nor he can be held responsible for the availability of the same. In the ordinary course of business the acts done by the State employees in due discharge of their official duties would be presumed to have been done in accordance with the rules and law. There is nothing on the record that the signatures of the issuing authority were forged or were not of competent authority. The validity of the driving licence got further corrobo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....become a valid driving licence or a duly issued driving licence in accordance with the Motor Vehicles Act. (2) The insured bonafidely believing in the validity of a forged driving licence employing the holder of a fake driving licence renewed by a competent authority, would not amount to violation of the conditions of contract or of insurance policy. It would not be violating either conditions of indemnity or the insurance policy or the contract or violation of any statutory provisions. Under these circumstances, merely employing a driver with a forged driving licence would not absolve the insurer of its liability; (3) In the absence of mansrea or knowledge or intention to violate the terms of policy or the provisions of the Act by the insured, the insurance company would not be discharged of its liability from indemnifying the insurer or of its statutory liability to third party or its contractual liability to third party. (4) The insurance company cannot refuse to meet its liability qua third party for any act or omission bonafidely or otherwise committed by the insured or its liability inasmuch as third party for whose benefit the insurance has been pr....