Insurer is liable for compensation even if driver holds learner's license unless breach is proved.

Two appeals arose from a common award dated 11/09/2018 passed by the Additional Motor Accidents Claims Tribunal, Kurud.

The claimants—a mother and her six-month-old daughter—were injured in an accident involving an e-rickshaw driven by Respondent No. 1, who held a learner's license.

The Insurance Company appealed (MAC No. 1860/2019) claiming immunity because the driver allegedly violated Rule 3 of the Central Motor Vehicles Rules, 1989, by not being accompanied by an instructor and lacking 'L' plates.

Simultaneously, the claimants appealed (MAC No. 1814/2019) seeking enhancement of the ₹93,617/- compensation awarded for fractures and head injuries.

1. Whether the Insurance Company is liable to pay compensation when the offending vehicle's driver held only a learner's license and allegedly violated statutory conditions of such a license.

2. Whether the compensation awarded by the Tribunal was just and proper or required enhancement based on the nature of injuries.

The court applied the principle established by the Supreme Court in National Insurance Co. Ltd. v. Swaran Singh and Others (2004) 3 SCC 297, which holds that insurance companies are liable to satisfy a decree even if the driver possessed only a learner's license at the time of the accident.

The Court adhered to the provisions of Rule 3 of the Central Motor Vehicles Rules, 1989, regarding the requirements for learner's license holders, while noting the evidentiary burden on the insurer to prove a breach of policy conditions.

Regarding the Insurance Company's appeal, the Court observed that although a specific plea was raised concerning the absence of an instructor and 'L' signs, the insurer failed to lead any evidence to prove these factual breaches.

Witnesses examined from the RTO and the Insurance Company only confirmed the existence of a learner's license but did not testify regarding the absence of an instructor at the time of the accident.

Regarding enhancement, the Court found the Tribunal’s award "grossly inadequate" given the mother suffered a foot fracture and the infant suffered rib fractures and a head injury.

The Court recalculated the compensation by increasing amounts for medical bills, pain and suffering, and adding previously ignored heads like transportation, future treatment, and loss of amenities.

The Court held that the Insurer is liable despite the learner's license.

The total compensation was enhanced from ₹93,617/- to ₹2,88,600/-, representing an additional award of ₹1,94,983/-, to be deposited with 6% interest per annum from the date of the claim filing (11/09/2018).