Digi - Legal Insights

Driver of commercial vehicle, which was under 7500 Kg, was validly licensed to operate it without needing additional endorsements hence, Insurance Company is to indemnify awarded compensation to claimants and recover it from vehicle owner.

Impugned judgment passed by Tribunal is modified directing Appellant-insurance company to pay enhanced compensation of Rs.1,82,000/- to claimants along with interest @ 8% per annum from date of registration of claim petition till its realization.

In case of policy breach due to drivers lack of valid licence, insurer must first satisfy award and then recover from owner, with compensation computed including 40% future prospects and conventional heads.

Income Tax Returns are reliable statutory evidence for assessing deceaseds income, and compensation cannot be reduced merely because the return was filed after the accident.

In absence of evidence of contributory negligence by motorcyclist, entire liability rests on rash and negligent Alto driver, entitling claimants to full compensation.