TaxTMI 
TaxTMI 
2020 (3) TMI 1274
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....ich the Appellant's husband, Vinod Ray Kothari, who was the owner of the car, and his daughter died and the vehicle was damaged. The driver of the vehicle, Dharmendra Singh Chauhan got an FIR registered with the police. The Respondent/ Insurance Company, on intimation having been given to them, appointed a spot surveyor, and also a regular surveyor to carry out survey in the matter, but the claim was rejected by them vide their letter dated 28.03.2011. The Respondent/ Insurance Company stated in the repudiation letter that the driver Dharmendra Singh Chauhan did not have a proper driving licence at the time of the accident. The licence produced by him, alleged to have been procured from the office of the licencing authority, Sheikh Sarai, D....
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.... agony and Rs. 11,000/- for cost of litigation. The Respondent/ Insurance Company repudiated the said claim also vide their letter dated 14.02.2012 on the same ground that Dharmendra Singh Chauhan, the driver of the vehicle did not possess a valid and effective driving licence at the time of the accident in question. 5. The consumer complaint no. 227/2012 was also allowed by the District Forum, vide order dated 28.02.2013 and the Respondent/Insurance Company was directed to pay an amount of Rs. 2,00,000/- for personal accident claim along with interest @ 9% per annum from the date of filing the complaint and the cost of litigation of Rs. 2,500/-. Being aggrieved against the said order of the District Forum, the Respondent/ Insurance Comp....
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....he instant case it is a matter of fact that no record of the licence bearing no. P03041288753070 was found with the licensing authority. 8. Having set forth the facts of the present case, the question of law that arises for consideration is what is the extent of care/diligence expected of the employer/insured while employing a driver? To answer this question, we shall advert to the legal position regarding the liability of the Insurance Company when the driver of the offending vehicle possessed an invalid/fake driving licence. In the case of United India Insurance Co. Ltd. vs. Lehru & Ors. a two Judge Bench of this court has taken the view that the Insurance Company cannot be permitted to avoid its liability on the ground that the person....
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....ence duly verified from the licensing authority or if the attention of the owner of the vehicle is otherwise invited to the allegation that the licence issued to the driver employed by him is a fake one and yet the owner does not take appropriate action for verification of the matter regarding the genuineness of the licence from the licensing authority. That is what is explained in Swaran Singh's case (supra). If despite such information with the owner that the licence possessed by his driver is fake, no action is taken by the insured for appropriate verification, then the insured will be at fault and, in such circumstances, the insurance company is not liable for the compensation." 9. While the insurer can certainly take the defence tha....
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....ve otherwise. If the employer finds the driver to be competent to drive the vehicle and has satisfied himself that the driver has a driving licence there would be no breach of Section 149(2)(a)(ii) and the Insurance Company would be liable under the policy. It would be unreasonable to place such a high onus on the insured to make enquiries with RTOs all over the country to ascertain the veracity of the driving licence. However, if the Insurance Company is able to prove that the owner/insured was aware or had notice that the licence was fake or invalid and still permitted the person to drive, the insurance company would no longer continue to be liable. 12. On facts, in the instant case, the Appellant/Complainant had employed the Driver, D....