Court rules that mere investigator statements are insufficient; Concrete evidence from licensing authority required to substantiate claims of licence falsity.
In a significant ruling, the Rajasthan High Court's Jaipur Bench has dismissed appeals by the National Insurance Company Ltd., reinforcing the requirement for substantial evidence when alleging policy breaches due to fake driving licences. The court, presided over by Justice Ashutosh Kumar, upheld the decision of the Motor Accident Claims Tribunal, Sikar, which awarded compensation to the claimants Sultan Singh and Parmeshwar.
The appeals, S.B. Civil Miscellaneous Appeal Nos. 2830 and 2880 of 2006, were filed by the insurance company on the grounds that the driver of the offending vehicle, Mahavir, did not possess a valid driving licence. The insurance company contended that their investigator found the alleged licence, purportedly issued by the DTO Guwahati, to be non-genuine. However, the court emphasized that the insurance company failed to provide concrete evidence by calling upon the licensing authority to verify the authenticity of the driving licence.
Justice Kumar highlighted that according to the Motor Vehicles Act, 1988, and the Evidence Act, 1872, it is imperative for the insurer to substantiate claims with evidence rather than relying solely on investigator statements. The absence of any testimony or documentation from the licensing authority led the court to rule against the presumption of the licence's falsity.
The court referenced a previous judgment by a Co-ordinate Bench in United India Insurance Company Ltd. v. Moda Ram, which set a precedent for requiring substantial evidence to prove such claims. This ruling underscores the judiciary's insistence on tangible proof over assumptions in cases involving insurance policy breaches.
The decision serves as a reminder to insurance companies of their obligations under the law to substantiate claims of licence falsity with authoritative evidence. The appeals were dismissed, maintaining the tribunal's original compensation awards to the claimants.
Bottom line:-
Insurance Company must provide concrete evidence to establish that the driver's license was fake, and mere investigator statements are insufficient to prove breach of policy conditions.
Statutory provision(s): Motor Vehicles Act, 1988, Evidence Act, 1872, Section 114
