Is the insurer of a tractor liable for third-party compensation though an unregistered trailer was attached to it?
Coram: Justice M.Jothiraman
The insurer of a tractor is liable for third-party compensation though an unregistered trailer was attached to it.
Yes. The insurer of a tractor is liable for third-party compensation though an unregistered trailer was attached to it. The trailer had no independent motor and was attached to the tractor which caused the accident, so the insurer of the tractor is liable, subject to recovery from the owner.
Motor Vehicles Act, 1988 — s.61 — s.66 — Third-party claim — Fundamental breach of policy conditions — Pay and recover — Motor Vehicles Act, 1988 — s.147 — Third-party risk — Pay and recover — Held: An insurer must satisfy a third-party award first and recover from the insured, the principle of pay and recover applying even where a fundamental breach of policy conditions is proved. (¶14) Motor Vehicles Act, 1988 — s.61 — Unregistered trailer — Liability of the tractor's insurer — Held further: The insurer of a tractor is liable for third-party compensation though an unregistered trailer was attached to it, the trailer having no independent motor of its own. (¶14) Motor Vehicles Act, 1988 — s.149 — Driving licence — Onus on the insurer — Held further: The onus lies on the insurer to prove that the driver held no valid driving licence and that policy conditions were breached. Appeal partly allowed. (¶13, 15)
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