S.149 MV Act | Vehicle Owner Not Liable If He Was Of Bona Fide Belief Regarding Genuineness Of Driver’s License
Case: Aisha v. Xavier & Ors.
Coram: Justice Sophy Thomas
Case No.: MACA NO.1524 OF 2012
Court Observation: “Ultimately, if it is found that the license was fake, the Insurance Company will continue to remain liable, unless they prove that the owner-insured was aware or had noticed that the license was fake and still permitted that person to drive. Even in such a case the Insurance Company would remain liable to the innocent third party, but it may be able to recover from the insured”.
“The driver is not a stranger to the contract of insurance between the Insurance Company and the owner of the vehicle and there is a quasi contract between the driver and the insurer. The person liable in the first instance is the driver himself. The owner becomes liable for the negligence on the part of the driver by applying the principles of vicarious liability in an action for tort. The Insurance Company becomes liable to indemnify the owner of the vehicle because of the contract of insurance entered into between the owner of the vehicle and the Insurance Company. In fact, ultimately what the Insurance Company takes upon themselves by virtue of the contract of insurance is the primary liability of the driver for paying compensation for his negligent act to the party, who suffered because of his negligence”.
S.149 MV Act