A charge-sheet alone cannot prove a licence breach sufficient to exonerate the insurer.

On 18 August 2009, Rajubhai alias Rajeshbhai was fatally struck from behind by a motorcycle while returning from work.

His legal representatives brought a claim under Section 166 of the Motor Vehicles Act, 1988.

The Tribunal awarded Rs. 8,32,500 with interest at 9% per annum and held the insurer jointly and severally liable.

The insurer appealed under Section 173, contending that the motorcycle’s driver lacked a valid and effective driving licence.

It relied on the charge-sheet but did not produce independent evidence establishing the alleged licence breach.

1. Whether the insurer proved that the motorcycle’s driver lacked a valid and effective driving licence, thereby establishing a breach of the insurance policy sufficient to exonerate it from liability.

2. Whether the charge-sheet, without supporting evidence, was sufficient to establish that breach.

Sections 166 and 173 of the Motor Vehicles Act, 1988 provide, respectively, for a compensation claim arising from a motor accident and an appeal against the Tribunal’s award.

To obtain exoneration on the ground that the driver lacked a valid and effective driving licence, the insurer bears the burden of proving the alleged policy breach through cogent evidence.

A charge-sheet or criminal charge, without supporting evidence, is insufficient by itself to establish that breach.

No judicial precedent was relied upon in the judgment.

The insurer relied on the charge-sheet to argue that the driver did not hold a valid licence, but it did not examine the driver, an insurer representative, an RTO official, or otherwise provide independent evidence of the alleged defect.

The Court held that the charge-sheet’s allegation could be relevant in criminal proceedings but did not, on its own, discharge the insurer’s burden of proving a policy breach.

The insurer therefore could not be exonerated on the evidence presented.

It directed the Tribunal to disburse any undistributed compensation in accordance with law; any interim relief stood vacated, and the Record and Proceedings were to be returned to the concerned court.