(O&M) National Insurance Co. Ltd. Vs Rani and Ors.

The Insurance Company is in appeal which is in the nature of requiring a clarification whether the insurer is entitled to recover the awarded amount from the owner/insured after satisfying the claim. It is specifically held in paragraph 13 while answering issue No.2 that the records produced by the insurer proved that the driver-second respondent, who was driving a vehicle had only a fake licence. In the ultimate order of relief set out through paragraphs 17 and 18, there was no reference to the right of the insurer for recovery from the insured for breach of terms of the policy. It could have been easily got clarified by the insurer even before the Tribunal but having allowed this appeal to be admitted, I would affirm that if the driving licence of the driver was

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FAO No.2035 of 2001 (O&M) - 2 -

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proved to be fake, then the Insurance Company's liability will be still to satisfy the claimant but it will always have a right of recovery against the insured.

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The award of the Tribunal is under the circumstances

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modified to provide for a right of recovery against the insured.

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The appeal is allowed on the above terms.

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(K.KANNAN) JUDGE

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24.09.2010 sanjeev

(O&M) National Insurance Co. Ltd. v. Rani and Ors.

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(O&M) National Insurance Co. Ltd. v. Rani and Ors.

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