In Brief
On 12 August 1995, a truck was struck by another negligently driven truck, killing the driver Om Prakash. His widow claimed compensation from both the truck owner and insurance company. The Motor Accident Claims Tribunal awarded compensation against the owner but absolved the insurer, finding no proof that the vehicle was driven by a licensed person. The Supreme Court held that an insurance company's liability is not automatic; the owner must plead and prove the driver was authorised and properly licensed. However, the Court directed the insurer to pay the compensation to the claimants with liberty to recover the amount from the owner, upholding social welfare principles underlying compulsory motor insurance legislation.
The lawyer headnote and full judgment text are available to registered users.