Motor Vehicle driven by minor : Insurance Company not liable

Madhya Pradesh High Court Rules Insurance Company Not Liable for Compensation Due to Minor's Driving Breach. High Court directs insurance company to initially pay compensation but allows recovery from vehicle owner and minor driver.

In a significant judgment, the Madhya Pradesh High Court at Jabalpur has ruled that the United India Insurance Company is not liable to indemnify the claimant due to a fundamental breach of policy conditions. The judgment was passed by Justice Himanshu Joshi in the case of Branch Manager United India Insu.Comp v. Maneesh Kumar Singrore.

The case arose from a road accident that occurred on October 7, 2004, involving a motor vehicle driven by a minor, Maneesh Kumar Singrore. The insurance company contested its liability, arguing that the driver did not possess a valid driving license, thereby breaching the terms of the insurance policy.

The court scrutinized the incident and confirmed that the accident was caused due to rash and negligent driving by the minor, who was not legally eligible to drive under Sections 3, 4, and 5 of the Motor Vehicles Act, 1988. These sections explicitly prohibit individuals below a certain age from driving and mandate vehicle owners to ensure their vehicles are driven only by licensed individuals.

Justice Joshi emphasized that the responsibility to prevent minors from driving rests with the vehicle owner, in this case, the driver's elder brother. The owner cannot evade liability merely by claiming ignorance or lack of consent.

Drawing from precedents set by the Supreme Court, notably in cases such as United Insurance Company Ltd. v. Rakesh Kumar Arora and National Insurance Co. Ltd. v. Swaran Singh, the High Court held that the insurance company could be exonerated from its indemnification liability due to the fundamental breach of policy conditions by the owner.

However, in alignment with the principle of ensuring prompt compensation to victims, the court directed the insurance company to pay the compensation amount initially. It granted the company the right to recover the amount from the vehicle's owner and the minor driver subsequently.

The judgment reinstates the order of the learned Tribunal awarding compensation of Rs. 76,000 to the claimant, acknowledging the severe injuries sustained in the accident, including fractures requiring hospitalization. The insurance company is allowed to pursue recovery from the respondents in accordance with the law.

This ruling underscores the importance of adhering to statutory requirements concerning vehicle operation and insurance policy conditions. The judgment serves as a cautionary reminder to vehicle owners about their duty to ensure compliance with legal norms to prevent unauthorized and unsafe driving practices.

Bottom Line:

Insurance company not liable to indemnify claimant due to fundamental breach of policy conditions when offending vehicle was driven by a minor without a valid driving licence. Liability to pay compensation rests jointly and severally on the owner and driver. Insurance company directed to pay compensation first and recover from the owner and driver later.

Statutory provision(s): Motor Vehicles Act, 1988 Sections 3, 4, 5

Branch Manager United India Insu.Comp v. Maneesh Kumar Singrore, (Madhya Pradesh)(Jabalpur) : Law Finder Doc Id # 2808382