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TMI Blog1996 (10) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... nce company, the owner and the driver on account of their statutory as well as tortious liability. A compensation of ₹ 2,59,200/- with 12% P.A. interest was awarded to the claimants against the owner, driver and the appellant insurance company jointly and severally. The owner was held liable for tortious act of his driver a employee vicariously. 4. The driver and owner of the truck jointly defended the claim, by putting a common defence, inter-alia, denying the occurrence, taking the plea of alibi and putting the case to be of their false implication. 5. The appellant insurance company demurred, inter-alia, on the pleas of defective verification, bar of limitation, vagueness of the petition, non-disclosure of cause of action, contravention of the provisions of Motor Vehicles Act and filing of the petition to defraud the appellant. The validity of the driving licence of the respondent-driver was denied. In addition to the above pleas, the pleas taken by the owner and driver were also put up, 6. The Tribunal found, the deceased was killed on account of rash and negligent driving of the above referred truck by Rajbir Singh driver, owned by Kinara Tubes Pvt. Ltd. and ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which postulates as understood by a common man of ordinary prudence, justice to all and individual concerned it is required from constitutional functionaries with foreseeability, to provide justice to individuals, though may not at the cost of the society at large, Justice has to be practical, responsible to realities of situation. 10. If I may venture to say the Legislation always presumed to have provided for disciplined conduct of a person over whom the individuals citizens have no control. Further, it cannot be said that a person having a right can be left high and dry by not providing for remedy by legislation of its enforcement. 11. At this stage, I may hasten to add, that one of the objects of all laws much less common laws is to adjust or solve the difficulties, adjust the just relations in the social and commercial life by judicial process, by further giving a meaning to the statutory provisions for meeting the set of facts usual and unusual normal and abnormal, growing with the national development, required to be met from the demands of expanding society and laws, failing to do so may result in draconian rule of law or law of jungle. The rule of law is the golden t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty against the delinquents i.e. owner, driver and the insurer. 13. From a close look of the material provisions of the Act, it would be apposite to refer to law relating to issuing of the driving license as a preventive measure, as it manifests from the statutory provisions, thus; No person is allowed to drive a motor vehicle in a public place without holding an effective valid driving licence issued by a duly authorised competent authority. No one can permit or authorise any person to drive without having an effective valid driving licence. Neither the holder of a driving licence nor any other person shall permit the use of his driving licence by another person Driving licence can be issued only by a duly authorised competent authority to a person above the age of 18 years and that also if one is not disqualified for holding or obtaining it, and passes the test of competence to drive; provided further that he ordinarily resides within the territorial jurisdiction of the appropriate authority. Driving licence can be issued to a person for a specified period. Test for competence to drive is the quintessence, of course, subject to the exemption imbibed in the Act. However, p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion made to it, renew a driving licence issued under the provisions of this Act, with effect from the date of its expiry. Provided that in any case where the application for the renewal of a licence is made more than thirty-days after the date of its expiry, the driving licence shall be renewed with effect from the date of its renewal. Provided further that where the application is for the renewal of a licence to drive a transport vehicle or where in any other case, the applicant has attained the age of forty years, the same shall be accompanied by a medical certificate in the same form and in the same manner as is referred to in Section (3) of Section 8 and the provisions of Sub-Section (4) of Section 8 shall, so far a may be, apply ;a relation to every such case as they apply in relation to a learner's licence. xx xx xx xx xx (6) Where the authority renewing the driving licence is not the authority which issued the driving licence it shall intimate the fact of renewal to the authority which issued the driving licence . 18. It emerges from a reading of substantive and procedural provisions of the Act and the Rules that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es which the iusurer may incur to third party providing principaly the social security, the third party risk, insurance in respect of claims for damages caused to third party i.e. road-users by the owner or driver's motor vehicles, provided for compulsory insurance of the vehicle. 21. In consonance with the object of providing social security, protection to the road users as a preventive measure and remedy to a person who suffered at the hands of third person on whom one has no control provided by Chapter XI of the Act for insurance of motor vehicles against third persons. 22. It would be expedient at this stage to notice the scheme of the insurance under the act against third party risk. Persons have been debarred from using or permitting to use any motor vehicle in public-place unless there is in force in relation to the use of vehicle by the person or other persons, a policy of insurance complying with the requirements of Chapter XI of the Act. 23. The relevant statutory provisions to answer the questions raised, runs thus: 146. Necessity for insurance against third party risks- (1) No person shall use, except as a passenger or cause or allow any other person t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the vehicle or damage to any property of a third party caused by or arising out of the use of the vehicle in a public place; against the death of or bodily injury to any passenger of a public service vehicle caused by or arising out of the use of the vehicle in a public place: Provided that a policy shall not be required - (1) to cover liability in respect of the death, arising out of and in the course of his employment of the employee of a person insured by the policy or in respect of bodily injury sustained by such an employee arising under the Workmen's Compensation Act 1923 (8 of 1923) in respect of the death of, or bodily injury to any such employee - (a) engaged in driving the vehicle or (b) if it is a public service vehicle engaged as a conductor of the vehicle or in examining tickets on the vehicle or (c) if it is a goods carriage, being carried in the vehicle or (ii) to cover any contractual liability. Explanation :- For the removal of doubts, it is hereby declared that the death of or bodily injury to any person or damage to any property of third party shall be deemed to have been caused by or to have arisen out of, the use of a vehicle in public ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r a certificate of insurance has been issued under Sub-section (3) of Section 147 in favour of the person by whom a policy has been effected, judgment or award in respect of any such liability as is required to be covered by a policy under Clause (b) of Sub-section (1) of Section 147 (being a liability covered by the terms of the policy) or under the provisions of Section 163A, is obtained against any person insured by the policy then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to the provisions of this section, pay to the person entitled to the benefit of the decree any sum not exceeding the sum assured payable thereunder, as if he were the judgment debtor in respect of the liability together with any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any enactment relating to interest on judgments. (2) No sum shall be payable by an insurer under Sub-section (1) in respect of any judgment or award unless before the commencement of the proceedings in which the judgment or award is given, the insurer had notice through the court or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned of the bringing of the proceedings and the insurer to whom notice is so given is entitled under the corresponding law of the reciprocating country, to be made a party to the proceedings and to defend the action on grounds similar to those specified in Sub-section (2). (4) Where a certificate of insurance has been issued under Sub-section (3) of Section 147 to the person by whom a policy has been effected, so much of the policy as purports to restrict the insurance of the persons insured thereby by reference to any conditions other than those in Clause (b) of Sub- section (2) shall, as respects such liabilities as are required to be covered by a policy under Clause (b) of Sub-section-(l) of Section 147, be of no effect; Provided that any sum paid by the insurer in or towards the discharge of any liability of any person, which is covered by the policy by virtue only of this Sub-section shall be recoverable by the insurer from that person. (5) If the amount which an insurer becomes liable under this section to pay in respect of a liability incurred by a person insured by a policy exceeds the amount for which the insurer would apart from the provisions of this secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the holders of any debentures secured by a floating charge of any property comprised in or subject to the charge, if, either before or after that event, any such liability is incurred by the insured person, his rights against the insurer under the contract in respect of the liability shall, notwithstanding anything to the contrary in any provision of law, be transferred to and vest in the third party to whom the liability was so incurred. (2) Where an order for the administration of the estate of a deceased debtor is made according to the law of insolvency, then, if any debt provable in insolvency is owing by the deceased in respect of a liability to a third party against which he was insured under a contract of insurance in accordance with the provisions of this Chapter, the deceased debtor's rights against the insurer in respect of that liability shall, notwithstanding anything to the contrary in any provision of law, be transferred to and vest in the person to whom the debt is owing. (3) Any condition in a policy issued for the purpose of this Chapter purporting either directly or indirectly to avoid the policy or to alter the rights of the parties thereunder upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be remedied and edifice of the provisions contained in the Act; (vi) The words used in the Act are not to be applied literally. The facts cannot be sacrificed to phrases invalidating of a situation; (vii) No interpretation can be put which turns out to be so unfair that words used by the legislation could not have been intended to mean what they might appear to say; (viii) By interpretation process, unfair or draconian result should not be produced; (ix) While resorting to interpretation of Statute, what reasonable person would think of a statute to mean and follow them, cannot be lost sight of; (x) While interpreting the law enacted for public at large involving social justice, and social security, sacred approach to say 'yes' unless there are good reason to say 'no' would be more appropriate as it would affirm public faith more in the institution like insurance more than to shake it; (xi) An attempt should be made while interpretting the statutory provisions that the object of the provisions are not rendered otoise by its literal construction/interpretation; (xii) The individual needs and demands of society, how far the legislature has gone to reconcile between th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the only remedy for breach of statutory duty, should not be only fine rather on the construction of statute. It can be inferred that the person injured by breach of the statute has a right to recover damages from the one committing it. ii) Insurer can undertake to cover the risk beyond that provided by the Statute or the limits by entering into a special contract; iii) The Statute provides defence to the insurer; iv) No insurer is entitled to avoid his liability or benefits of the judgment to any person other than the one provided by the Statute i.e. Section 149 of the Act; v) Where the insured has done everything within his power, it cannot be said that the insurer is guilty of any breach; vi) Where an act is done with the knowledge of the insured, the insurer would be liable to indemnify the insured. In such a situation the insurer cannot take the defence of breach of conditions of the certificate of insurance. The burden of proof of the violation of the policy or the breach of contract is on the insurer. It must be established by the insurer that the breach is on the part of the insured. Unless insured is at fault and is guilty of breach of conditions, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the promise; xiii) With respect to public policy, which the Act, is expected to meet, has been spelled out thus: The Legislature with unworkability and froth with several unsurmountable operational threats keeping in view the third party i.e. users of the road in the jungle of roads made the vehicles in the form of lethal weapons let loose as a public policy created, an agency of insurance to discharge the State duty towards the public through the insurance company. Thus conferring its own duty on the insurer giving the words its ordinary natural meaning to the Statute. It would be reasonable to infer and justify that the State has given this responsibility for commercial convenience on the assumption that the insurer would go a long way to give effect to the benign beneficial statutory benefits provided for the protection of third party, who is neither privy to the contract between insured and insurer nor is in a position to control the conduct of the insured or insurer in the use of vehicles in public place. There is no gain-saying that the contract of indemnity is not a personal contract in that sense with the third person. It is the third party's right against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lure to do so will be nothing else but, failure of the rule of law. 28. Reference may be made to Skandia Insurance Co. Ltd. v. Kokilaben Chandravadan and Ors. 1987 91 P.L.R. 665; Narcinva V. Kamat and Anr. v. Alfredo Antonio Doe Martins and Ors.Padma Srinivasan v. Premier Insurance Company Ltd., 1982 ACJ 191; Lalappa Lingappa v. Laxmi Vishnu Textile Mills, AIR 1981 S.C. 852 ; Rudul Sah v. State of Bihar and Anr., AIR 1983 S.C. 1086 and B.V. Nagaraju v. Oriental Insurance Co, Ltd, Divisional Office, Hassan. 29. I may hasten to add that conceptually, it has been observed in innumerable cases rather it has become axiomatic that the public interest should not be allowed to be overridden by the private interest. Courts are bound to consider the conduct of a person, rights and liabilities of a person provided by the Statute or common law. Keeping in view the golden principle 'standard of a reasonable person/man of ordinary prudence' bereft of microscopic or argumentative deduction by interpretation of law, individual conceptions or perceptions and give effect to the intent of Parliament i.e. individual cannot be left high and dry/without a remedy or redress for the damage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany wherein one is not liable for conduct but for the event. I may hasten to add that insurance policy under the Motor Vehicles Act is a blanket security to the road users. It can be termed as national or society's obsession by any civilized society. In public interest, it is only the mode of protection to the road users or to the road traffic. It is in consonance with achieving of primary purpose, victims and wrong doers, legitimate expectation with one's right and liabilities in the expanding role of legislation. It is a step forward for providing social justice that apart from the liability incurred by a party for conduct or commission of tortious act, provides statutory liability of the insurer. In spite of the cleavage of various opinions I am of the view, as precedently accepted, it is the principle of equity which ought to be done to the public who are users of the road with all the hazards of the mechanisation and use of motor vehicles. It was to mitigate the rigours of technicalities of common law and contractual law. Providing protection to the claimants of the road accidents and to achieve axiomatic justice in the exigencies of facto is more important and need ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surance, which infact spread loss on those lest able to bear it. It satisfies the social need, the need to compensate the victims to protect him against the impecunious dependent as road activities are prolofic sufficient of injuries and insurance is compulsory. It is aimed at the protection of public by providing that there should be body of insurer behind the driver to prevent crushing financially the owner and the driver, as obviously the company would not insure unless there is assurance of adequate precautions likely to be taken. It has been observed by Lord Denning J. That there should be absolute liability in all such cases whenever dependent can be protected by insurance. The person would not insure unless there is assurance that adequate precautions are likely to be taken 36. There can be no gainsaying that contract of insurance is a special kind of contract and cannot be put on the equal pedestal of the personal contract. I may say, as the contract does not run with property which is the subject matter of insurance, it is a policy of personal indemnification, particularly in case of statutory contract of insurance under the Motor Vehicles Act, where the insurer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised is with respect to driving by an un-licenced driver. It has been made incumbent rather mandatory to reimburse the third person/party in spite of the fact that insurer's right to avoid or cancell the policy, subject to the extent of amount insured. 39. Quintessence provided by Section 149(2) of the Act for absolving the insurer of its liability i.e. when the insurer had no notice from Court or the Tribunal of the proceedings initiated by the claimants. The insurance company has got a right to defend its liability in the proceedings on the grounds specifically statutorily provided. Since the right to defend on grounds statutorily provided, all other ground defence qua the insurer stood ruled out so far the liability under the Act is concerned. Reading of Sections 146, 147, 149, 150, 170 in its pith and substance provided defence against the insured and not a third person i.e. road user. Section 146(5) provides rather made it incumbent and obvious that insurer is liable to indemnify and reimburse the persons or class of persons specified in the policy, with respect to their liabilities with no strings attached to it. Only breach of specified condition would absolve the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count of injuries caused by the use of a motor vehicle by its rash and negligent driving. It was observed, by Hon'ble the Supreme Court in Skandia Insurance Co. 's case (supra) while dealing with the question whether a person who is not duly licenced by itself exonerates the insurance company from the liability, after noticing the facts and circumstances of the said case, neither owner committed any breach of the policy conditions of insurance nor violated the contractual conditions embodied in the policy and the condition which excludes driving by a person not duly licenced is not absolute and promissory to absolve, the insurer. Once it is shown that insured has done everything in his power to keep, honour and fulfil the promise and is not guilty of a deliberate breach, the insurer would be liable to reimburse the insured or third party injured. It was observed that even if it is treated as an absolute promise, there is substantial compliance therewith upon an express or implied mandate being given to the licenced driver not to allow the vehicle to be left unattended so that it happens to be driven by an unlicensed driver. The exclusion clause has to be read down in order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned to be driven by an unlicenced person regardless of the circumstances in which such contingency occurred, the insured or insurer will not be liable under the contract. It is the statutory provisions defining the conditions of exemption which was interpreted and observed that must be interpreted for which the same has been enacted accompanied by anxiety of the claimant that protection is not nullified by the back looking interpretation which serves to defeat the provisions rather than fulfil its life. Otherwise, it would be nullifying the benevolent provisions and purpose and philosophy of the Legislature without being informed of the true goal sought to be achieved. What the Legislature has given Courts cannot deprive by way of exercise of interpretation when both are plausible, one i.e. where more than two plausible options are available, then it more desirable option to take a view which relieves the distress and misery of the victims in preference to the other which will reduce profitability of the insured in regard to occupational hazards undertaken by them by way of business activities. 44. Section 3 of the insurance policy provides for general exception from the liabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... caused by him. The right of the third party insurance does not only follow from the policy, the contract and statutory provisions of law, but it follows on the basis of right in justice, equity and good conscience. 46. As observed in the earlier part of the judgment, the Legislation is alive to its duty towards third party as the liability of the insured for whom it was made incumbent to insure the vehicle statutorily specifying the defences on which they could defend their liability to pay as provided by Section 149 of the Act. The relevant part of Section 149(2) provides the situation when no sum shall be payable by the insurer and he would be entitled to defend an action against it. Apart from other grounds the relevant ground herein under consideration is of Section 149(2)(a)(ii) i.e. a condition excluding driving by a named person or persons, by any person who is not duly licenced or by any person who has been disqualified from holding or obtaining of driving licence during the period of disqualification. The policy in the present case, in terms of the statutory provisions provided for the class of persons entitled to drive. As earlier referred to, the person driving must ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be absolved of its liability merely on the proof that conditions envisaged by Section 147 have not been taken care of by the facts and circumstances of the case. The insurer cannot absolve itself from its liability particularly to the third party 50. It is incumbent upon the insurance company to further ensure that violation or non-compliance of the conditions either of the policy or of the provision of Section 147 equated to old Section 96-B(i)(ii) of the Act, was a wilful infringement. In order to meet the exigency of the object of the Act and public interest the exclusion clause has to be read down in order that the same is not at war with the purpose of providing safeguards to the victims of the accident and the role of the insurer to indemnify the Insured i.e. claim against tortfeaser is rendered illusory. The insurer is not left without a remedy. In case of violation of breach of term of the policy, the insurer can proceed against the insured, however, with regard to the liability against the third person which is the statutory duty of the insurer and the statutory right the third party, the same cannot be over ridden on account of any negligent violation intentional or un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resides, after he passes the test as prescribed or if he fails within one of the exceptions provided for exemption from test. Under the amended provisions as prevalent today read with the rules framed thereunder, it is enjoined upon the' State to maintain a Register in the prescribed form for issuing of the driving licences. In case of licence to drive transport vehicles carrying goods of dangerous or hazardous nature, the same would be effective for a period of one year and renewal there of is necessary subject to the condition that the driver undergoes a refresher course. 53. Learned counsel for the appellant has laid emphasis an the terms 'renewal' as envisaged in English language. Reference was made to 'Chamber's Dictionary' to define what a 'Licence' is. Similarly, learned counsel for the appellant-insurance company relied on words and phrases 1944 Volume 33 page 538, Webster's IInd 'New International Dictionary' Volume II, 1966 Edition page 1034 for renewal and for licence' page 1304; Mitral's Legal and Commercial Dictionary 4th Edition 1985 page 498 to define 'licence'. Similarly Section 52 of the Indian Easement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Motor Vehicles Act, we find that no authority has power to validate a driving licence issued by an unauthorised person or fabricated document can not be validated by any authority under the Statute. As a natural corollary, if a licence issued by an unauthorised person cannot be validated, the same cannot be renewed by any stretch of imagination. Apart from this, a void document cannot be validated by its renewal. Renewal can be effected of a document or of an act which is preexisting. There cannot be a renewal of a non-existing document as a licence forged or fabricated or one issued by an unauthorised person is no document in the eye of law. 56. Issuing of driving licences is the state's duty. Elaborate procedure has been provided by the Act and the Statute. It is only when the a, competent authority to issue licences is satisfied, that applicant for a licence for driving of a particular vehicle knows driving and is in medically fit position to drive that a driving licence is issued for a specified period, which is renewal at intervals even for which a medical certificate is required at the age of 40/50 years so on and so forth. At the option of the renewing authority on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd when it arises. We restrain ourselves from expressing any view with respect to the liability of the State to the person who suffers because of the forged document of the State, used by the forger. 60. Negligence as understood by a common man is an act where a person does not advert to consequences when as a reasonable man could have adverted to. It is blameworthy inadvertance to the consequences of conduct so far as a reasonable man would have adverted to them. It is in the social interest and in the interest of public. Otherwise too, it is also assumed that a man would act as a reasonable man and every act and conduct of a person would be judged at the alter of the standard of a reasonable person. Burden of proving that one acted as a reasonable man is discharged once it is shown that a reasonable care and skill was taken. It is the obligation of the master to ensure that before employing a person care has been taken and that the driver to whom vehicle is handed over was holding a valid driving licence. There is presumption that vehicle is being driven for the master's purpose and the driver acting in the course of employment was holding a valid driving licence unless re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with the statutory requirements. It is the requirement of the public policy that an employee acting beyond his authority during the course of his employment is not only liable but the master too. The rights conferred under the Motor Vehicles Act are in addition to the rights under tort and not derogation of rights under torts. Public interest should be allowed to over-ride the private interest. Courts are duty bound to consider the rights of public. The Legislation never intended that damage should be done to innocent persons without redress. As observed above, in the earlier part of the judgment, the very object of the Courts is to grant justice to the victims of road accidents. It would be no justice to deny the same for the sake of commercial convenience on the assumption that a person has committed fraud with the State in fabricating a document of driving licence which the State has failed to check under its duty of care for enforcement of law towards its citizen. If it is interpretted, as suggested by learned counsel for the appellant, than it would destroy the benefits of the beneficial benign legislation for the public interest at the alter of commercial convenience and te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The factum of rash and negligent driving was denied. There is no reference even remotely with respect to the denial of the relationship of employer and employee between Rajbir Singh driver and respondent-owner. There is no reference either of denial or acceptance with respect to holding of a valid driving licence by the driver much less its validity. The vehicle being insured with the insurance company-appellant was asserted and was not denied. Respondent-driver appeared in the witness box as R.W.I and admitted himself to be in the employment of the owner of the truck. With reference to his driving licence the only statement made by the witness is to the effect, My driving licence is in the Court. Exhibit Rl is the photo copy of my driving licence. I got this driving licence prepared from Gwaliar. The driving licence was brought by my Ustaad. I did not go personally there . The suggestion put to him about the licence being fictitious and not issued by the Licensing Authority, Gwaliar, was denied. I may hasten to add that the driving licence was taken into possession by the police, which was never summoned. Surprisingly and in the most casual form respondent No-3 the insurance com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e driving licence was not issued in the ordinary course of business. The maintenance of the record is not within the control of the holder of the licence nor he can be held responsible for the availability of the same. In the ordinary course of business the acts done by the State employees in due discharge of their official duties would be presumed to have been done in accordance with the rules and law. There is nothing on the record that the signatures of the issuing authority were forged or were not of competent authority. The validity of the driving licence got further corroborated when it was renewed twice over, particularly when there is not even a suggestion, that the renewal of the driving licence was in violation of any statutory rules regulations provisions of the Act or there was any violation of any procedure for renewal or renewal of the driving licence was not by a duly authorised person or it was fraudulent. Thus, in the facts and circumstances of the case in hand, I cannot resist in coming to a conclusion that respondent-Rajbir Singh was holding a valid driving licence at the time of the accident. 68. At this stage, I cannot restrain myself in observing chat the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity; (3) In the absence of mansrea or knowledge or intention to violate the terms of policy or the provisions of the Act by the insured, the insurance company would not be discharged of its liability from indemnifying the insurer or of its statutory liability to third party or its contractual liability to third party. (4) The insurance company cannot refuse to meet its liability qua third party for any act or omission bonafidely or otherwise committed by the insured or its liability inasmuch as third party for whose benefit the insurance has been provided, is not a privity to any breach as being not in control of the act or conduct of the insured or its employee or insurer. Thus, the insurance company cannot refuse to meet its liability qua third party. (5) The insurer is duty bound and liable statutorily as well as contractually to reimburse third party claim, for the tortuous act committed by the insured or his employee as well as the liability incurred by insured or his employee under the Motor Vehicles Act; (6) The insurance company can neither refuse to indemnify nor is discharged from its liability to the insured or the claimants for an act of fraud committed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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