Section 149 - MVA
Motor Vehicles Act, 1988 S. 149 - Liability of insurer
Where policy is avoided on proof or facts which renders the Insurance policy void under Section 149 (2) (b)
Pay and recover
Motor Vehicles Act, 1988 - Section 149 – Liability of insurer.
(i) In order to avoid an obligation to indemnify the Insured, the Insurer is under obligation to establish that there was conscious and willful breach of the terms of the policy.
(ii) Even when there is a willful breach of the terms of the policy under Section 149 (2) (a) of the Act, the Insurance Company is under obligation to indemnify the liability towards the third parties and recover the same from the owner.
(iii) Once the Insured proves that the driver did not hold any driving licence to drive the Class of vehicle involved in the accident or that the driving licence was fake; requires the owner and driver to produce the driving licence and if they failed to produce the same, the onus of proving breach of policy would be deemed to be discharged. Onus would then shift on the owner to establish that he was not guilty of breach of the terms of policy. In the absence of any evidence being produced by the Insured, in such cases, it will be presumed that he was guilty of a willful breach. The Insured in such cases, would be entitled to recover the compensation paid to third party in discharge of its statutory liability.
(iv) Where policy is avoided on proof or facts which renders the Insurance policy void under Section 149 (2) (b) of the Act, the Insurance Company would not be under obligation to pay even to third parties, as in such cases the contract of insurance is nonest.
2012 SCeJ 002 (Del.) Oriental Insurance Co. Ltd. VersusRakesh Kumar
Forged insurance certificate on the basis of which cover note was issued
Motor Vehicles Act, 1988 (59 of 1988) Section 149 – Insurance – Appellants produced a forged insurance certificate on the basis of which cover note was issued – Had the earlier cover note not been produced the fresh cover note would not have been issued – Provisions would clarify that no sum shall be payable by an insurer where a policy has been obtained by non-disclosure of material fact or by representation of fact which was false in some material particular – Held Insurance Company not liable.
Previous policy of insurance was fake
Motor Vehicles Act, 1988 - Section 149 – Liability of insurer - Vehicle in question was alleged to be previously insured with another Insurance Company and thereafter on the basis thereof insurance was purchased from the appellant-Company - That the previous policy of insurance was fake and, therefore, subsequent policy would also not be enforceable - It is admitted position on the record that the appellant-Insurance Company insured the vehicle in question against the accident with effect from 23.03.2015 to 22.03.2016 - Policy was purchased by the owner on 24.03.2015 and the premium was paid - Even if previous policy is assumed to be fake that would not make any difference because the accident has taken place during the duration/currency of a valid insurance issued by appellant- Company.
2018 SCeJ 1001 (P&H) UNITED INDIA INSURANCE COMPANY LIMITED v. ROSHNI DEVI