Insurance – Insurer’s Right to Recovery & Burden on Insurer to plead and prove wilful breach of duty of vehicle owner

Insurance – Right to Recovery of the Insurer –  Driver of the Tempo had fake driving licence – Burden on Insurer to plead and prove wilful breach of duty of vehicle owner

Judgment dated 30.10.2023 in Special Civil Petition (Civil) No.19992 of 2023 in IFFCO Tokio General Insurance Co. Ltd Vs. Geeta Devi and others

Dependants of Dharambir who suffered fatal injuries on 9.5.2010 filed the claim petition.  The Tribunal awarded compensation of Rs.13,70,000/- with interest vide Judgment dated 6.7.2018.

However, the driver of tempo had fake driving licence and the petitioner-insurance company would not be liable to pay compensation.  The Tribunal, therefore, directed the insurer to pay compensation with liberty to recover the same from the owners of tempo.

This was confirmed by the judgment dated 11.5.2023 of the Delhi High Court.

HELD, the insurer had to raise the plea and prove that the owner had allowed the driver to drive the vehicle knowing that his licence was fake.   The burden is on the Insurer to prove that there was failure of owner in carrying due diligence on driving licence of driver before employing him to drive the vehicle.  It was for the insurer to prove wilful breach on the vehicle owner.   SLP was dismissed.