Driving Without License : Claimant should not suffer due to statutory violation by the insured
Madras High Court Directs Insurer to Compensate Minor in Accident Case, Allows Recovery from Vehicle Owner. Court Upholds Third-Party Rights Despite Absence of Valid Driving License, Orders Compensation Deposit for Minor's Benefit
In a significant ruling, the Madras High Court's Madurai Bench has directed the United India Insurance Company Limited to compensate a minor, Vincent Raj, for injuries sustained in a road accident, despite the rider of the offending vehicle lacking a valid driving license. The judgment, delivered by Justice R. Poornima on September 24, 2025, mandates the insurer to pay Rs. 1,05,373 as compensation to the claimant and subsequently recover the amount from the vehicle's owner.
The case arose from an incident on January 17, 2008, when a TVS XL Super moped, driven negligently, hit the minor while he was walking with his mother on Senjudar Street, Samathanapuram. The accident resulted in multiple injuries, including a skull fracture, leading to permanent disability for the six-year-old claimant. The vehicle, registered to the first respondent, was insured with United India Insurance, the second respondent in the case.
Initially, the Motor Accident Claims Tribunal, Tirunelveli, ruled in favor of the minor, awarding compensation and directing the insurer to pay. However, United India Insurance contested this decision, citing the absence of a valid driving license for the vehicle's rider at the time of the accident, arguing that it violated policy conditions and statutory requirements under the Motor Vehicles Act, 1988.
The court's detailed examination revealed that the vehicle's owner and rider failed to produce a valid driving license, with evidence from the Regional Transport Authority confirming no license was issued in the rider's name. Despite this, the court emphasized that third-party claimants should not suffer due to statutory violations by the insured, affirming the insurer's initial liability to satisfy the compensation award.
Justice Poornima further ordered the award amount to be deposited in a fixed deposit in a nationalized bank until the minor attains majority, permitting the natural guardian, the minor's mother, to withdraw interest periodically for the child's welfare.
This judgment underscores the judiciary's commitment to protecting third-party rights in insurance claims, even amidst statutory breaches by insured parties. The insurer's right to recover the paid compensation from the vehicle's owner remains intact, ensuring accountability and adherence to legal obligations in road safety and insurance matters.
Bottom Line:
Insurance company's liability to pay compensation in case of violation of policy conditions by the owner/driver of the insured vehicle - Insurer directed to pay compensation to the claimant first and recover the amount from the owner of the vehicle.
Statutory provision(s): Motor Vehicles Act, 1988 Section 3, Section 181, Section 147
