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Judgment
K.A. Abdul Gafoor, J.—The petitioner is O.P. (MV) No. 799/91 claimed compensation for the damages suffered to his vehicle. The appellant is the insurer of that vehicle. An amount of Rs. 24,700/- had been directed to be paid by the appellant. He has been given permission to recover the said amount. It is contended that as the driver did not have the driving licence at the time of accident, the insurer cannot be mulcted with the liability. The compensation payable in terms of the accident is in excess of what is payable in terms of the policy. Therefore, the award is bad. u/s 147(2) (b) of the Motor Vehicles Act, 1988 the compensation payable by an insurer for the damages sustained to the property is limited to Rs. 6,000/- . Even if the driver did not have the licence at the time of the accident, the insurer will have the liability only to pay that much amount and not in excess of the same. It is contended by the owner that the insurer can later recover the entire amount awarded after paying the same from the owner. Therefore, there is no reason to modify the award.
Even if there had been violation of condition of the policy as the driver did not have the licence, the insurer cannot have more liability than that covered under the policy. Therefore, it is made clear that the appellant insurer will have the liability of Rs. 6,000/- and balance shall be paid to the claimant by the owner and driver of the offending vehicle jointly and severally. It is an admitted case that the driver did not have the driving licence and therefore there was violation of policy condition. In such circumstances, even the amount covered by the statutory policy shall have to be paid by the insured and the insurer shall be allowed to recover that amount from the insured. Therefore, Rs. 6,000/- payable in terms of section 174(2) (b) shall be recovered from the owner of the vehicle.
The appeal is disposed of as above.