An insurance agent inspects an autorickshaw outside a Kerala court, reflecting recent policy clarifications.
The Kerala High Court has clarified that the absence of a badge for an autorickshaw driver does not automatically constitute a breach of insurance policy conditions, provided the driver holds a valid license. This ruling impacts how insurance companies handle motor accident claims involving autorickshaws in the state.
Justice M.B. Snehalatha stated that in such cases, the insurer is obligated to provide compensation and cannot seek recovery from the registered owner under the ‘pay and recovery’ principle. The court emphasized that a badge or a ‘transport vehicle endorsement’ is not a mandatory requirement for driving a light transport vehicle like an autorickshaw.
The ruling stemmed from a Motor Accidents Claims Tribunal case where claimants sought compensation following the death of a passenger in an autorickshaw accident. The insurer had argued that the driver’s lack of a badge violated policy conditions, thus absolving them of liability. However, the High Court, relying on Supreme Court precedents, affirmed that badges are no longer mandatory for light transport vehicles if drivers hold valid licenses.
Consequently, the court dismissed the insurer’s appeal, upholding the Tribunal’s award and confirming the insurer’s liability to pay compensation without recourse to recovery from the owner. This decision aligns with previous Supreme Court rulings in *Mukund Dewangan v. Oriental Insurance Company Limited* and *Bajaj Alliance General Insurance Co. Ltd. v. Rambha Devi*.
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