Insurer entitled to recover compensation from vehicle owner upon failure to produce valid driving license.

On May 30, 2011, Md. Mustaq Ansari died when his motorcycle was hit by a truck (Reg. No. BR-1G-8935)

The deceased’s parents filed Claim Case No. 229 of 2011 before the Motor Accident Claim Tribunal (MACT), Patna, claiming the deceased earned ₹5,000/month from tuitions and his father’s store

The Tribunal awarded ₹3,16,500 with 8% interest, assessing monthly income at ₹3,000 due to lack of documentary evidence

The Insurance Company appealed (M.A. 778/2012) seeking "pay and recover" rights because the driver’s license was not produced

The claimants appealed (M.A. 527/2013) seeking enhancement of compensation

1. Whether the claimants are entitled to enhanced compensation based on oral evidence of income and educational qualifications in the absence of documentary proof

2. Whether the Insurance Company is entitled to the right of recovery from the vehicle owner for the driver's failure to produce a valid driving license

The court considered the admissibility of oral evidence in MACT cases as established in Syed Sadiq and Ors. v. Divisional Manager, United India Insurance Company Limited (2014) 2 SCC 735 and Ramchandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited (2011) 13 SCC 236. These precedents allow for oral evidence when documentary evidence is unavailable.

The court applied principles of motor insurance law regarding the breach of policy conditions (absence of a valid driving license) which entitles the insurer to "pay and recover" against the owner.

The Court observed that while oral evidence is admissible, the claimants failed to provide basic details such as the name of the college, the Intermediate certificate, or the location and nature of the father’s store.

Without this "basic homework," the court held that the Tribunal’s assessment of ₹3,000/month was justified and high court intervention for enhancement was not warranted.

Regarding the Insurance Company’s liability, the Court noted that the vehicle owner failed to produce the driver's license despite a specific Tribunal order dated May 14, 2012.

Consequently, it is deemed that the truck was plying without valid documentation, constituting a breach of the insurance policy.

The Insurance Company’s appeal (M.A. 778/2012) was disposed of with a direction to pay the balance amount to the claimants by July 31, 2026, while granting the Company liberty to realize (recover) the paid amount from the vehicle owner due to the lack of a valid driving license.

A penalty of ₹10,000 was set for any delay in payment to the claimants.