Motor Accidents | Absence Of Badge Not Breach Of Policy For Autorickshaw Driver, Insurer Liable To Compensate: Kerala High Court

The Kerala High Court, in a recent judgment, clarified that since there is no need for separate badges to drive autorickshaws if drivers hold valid licenses, absence of badge is not a fundamental breach of insurance policy conditions.Justice M.B. Snehalatha held that in such circumstances, the insurer is liable to compensate and it does not have the right to recover from the registered owner the compensation paid under the 'pay and recovery' principle:“the requirement of a “badge” or “transport vehicle endorsement” is not a mandatory condition for driving a light transport vehicle like an autorickshaw. The absence of a badge, therefore, does not amount to a fundamental breach of policy conditions… there is no merit in the contention put forward by the Insurance Company that, since the driver of the autorickshaw had no badge, the insurance company is entitled to recover the award amount from the RC owner of the vehicle.”The claimants had preferred a claim before the Motor Accidents Claims Tribunal following the death of one Bhargavi, who sustained fatal injuries when the autorickshaw in which she was travelling was involved in an accident. According to the claimants, the accident occurred due to the rash and negligent driving of the autorickshaw.The driver and the owner of the autorickshaw remained absent and was set ex parte by the Tribunal. The insurer filed written statement that there was violation of policy conditions since the driver of the autorickshaw did not hold a badge and therefore, the insurer is not liable to indemnify the owner.The Tribunal passed an award for Rs. 1,55,000/- with 8% interest and cost. This was challenged in appeal before the High Court was preferred by an insurance company. The insurer sought to recover the amount paid from the registered owner.The Court relied on the Apex Court decisions in Mukund Dewangan v. Oriental Insurance Company Limited and Bajaj Alliance General Insurance Co. Ltd. v. Rambha Devi, and found that it is no longer mandatory to have badges to operate light transport vehicles if drivers hold valid licences.The legal position being so, the Court opined that absence of badge is not a fundamental breach of policy conditions and the insurer would be liable to pay. Therefore, it was found that the insurer is not entitled to recover the compensation paid from the registered owner of the autorickshaw.The Court, thus, dismissed the appeal, upholding the Tribunal's finding. Case No: MACA.No.3848 of 2016Case Title: United India Insurance Company Ltd. v. E.G. Sahadevan and Ors.Citation: 2026 LiveLaw (Ker) 198Counsel for the appellant: John Joseph VettikadCounsel for the respondents: Sheji P. AbrahamClick to Read/Download Judgment

Motor Accidents | Absence Of Badge Not Breach Of Policy For Autorickshaw Driver, Insurer Liable To Compensate: Kerala High Court

K. Salma Jennath

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