NEW INDIA ASSURANCE CO. LTD vs Anumula Venkateswarlu

THIS revision petition has been filed by the petitioner against the order dated 22.11.2007 passed by the Andhra Pradesh State Consumer Disputes Redressal Commission, Circuit Bench at Tirupati (in short, ''the State Commission '') in Appeal No. 1157of 2006 - The New India Assurance Co. Ltd. Vs. Anumula Venkateswarlu by which, while dismissing appeal, order of District Forum allowing complaint was upheld.

BRIEF facts of the case are that Complainant/respondent ''s lorry AP 21 6756 was insured by OP/petitioner and insurance coverage was valid upto 6.9.2004. On 6.7.2004, vehicle met with an accident. Complainant submitted claim documents to the OP, but claim was repudiated on the basis that the driver of the vehicle was not holding valid driving licence and vehicle was used for carrying passengers at the time of accident; though, driver was having LMV licence. Alleging deficiency on the part of OP, complainant filed complaint before District Forum. OP resisted complaint and submitted that driver of the vehicle was not holding valid and effective driving licence to drive lorry. He was having driving licence to drive LMV, but not the transport vehicle and claim was rightly repudiated and prayed for dismissal of complaint. Learned District Forum after hearing both the parties allowed complaint and directed OP to pay Rs.1,95,405/ - along with interest and further awarded Rs.25,000/ - as compensation. Appeal filed by the petitioner was dismissed by learned State Commission vide impugned order against which, this revision petition has been filed. None appeared for the respondent even after service.

HEARD learned Counsel for the petitioner and perused record.

LEARNED Counsel for the petitioner submitted that as driver of the vehicle was not possessing valid driving licence at the time of accident, petitioner rightly repudiated the claim, but learned District Forum has committed error in allowing complaint and learned State Commission further committed error in dismissing appeal; hence, revision petition be allowed and impugned order be set aside. Perusal of record clearly reveals that at the time of accident, driver of the vehicle was possessing only LMV licence, whereas vehicle in question was transport vehicle. Learned District Forum while allowing complaint held that when driver of the vehicle was having licence to drive LMV then the nature of vehicle was whether; transport vehicle or non -transport vehicle was immaterial. Apparently, this reasoning given by District Forum while allowing complaint is contrary to law laid down by the Apex Court.

LEARNED District Forum has also placed reliance on judgement of Hon ''ble Apex Court in 2001 (1) ALJ 312 - Ashok Gangadhar Maratha Vs. Oriental Insurance Co. Ltd., but that judgement has been distinguished by Hon ''ble Apex Court in I (2008) CPJ I (SC) - New India Assurance Co. Ltd. Vs. Prabhu Lal and it was held that if driving licence does not contain endorsement of transport vehicle in the licence, driver cannot be held to be possessing valid driving licence to ply transport vehicle. The driver in the case in hand was in possession of licence for driving LMV. Thus, it becomes clear that for driving transport vehicle, endorsement of transport vehicle is required in the driving licence without which driver cannot drive transport vehicle and it would be treated that driver of the vehicle was not possessing valid driving licence. If it is held that driver was not possessing valid driving licence at the time of accident, insurance company was within its rights to repudiate the claim for damages to the vehicle and petitioner has not committed any deficiency in repudiating the claim for damages to the vehicle. Learned District Forum has committed error in allowing complaint and learned State Commission has further committed error in dismissing appeal and revision petition is to be allowed.

CONSEQUENTLY , revision petition filed by the petitioner is allowed and impugned order dated 22.11.2007 passed by learned State Commission in Appeal No. 1157of 2006 - The New India Assurance Co. Ltd. Vs. Anumula Venkateswarlu and order dated 23.3.2006 passed by District Forum in CD No. 157/2005 - Anumula Venkateswarlu Vs. New India Assurance Co. Ltd. are set aside and complaint stands dismissed with no order as to costs.