SKANDIA INSURANCE COMPANY LIMITED Vs. KOKILABEN CHANDRAVADAN

JUDGEMENT

(1.) While in some States1 a widow of victim of a motor vehicle accident can recover the amount of compensation awarded to her from the Insurance Company. in a precisely similar fact-situation she would be-unable to do so, in other States2, conflicting views having been taken by the respective High Courts. The unaesthetic wrinkles from the face of law require to be removed by settling the law so that the same law does not operate on citizens differently depending on the situs of the accident. The question is whether the insurer is entitled to claim immunity from a decree obtained by the dependents of the victim of a fatal accident on the ground that the insurance policy provided 'a condition excluding driving by a named person or persons or by any person who is not duly licensed or by any person who has been disqualified for holding or obtaining a driving licence during the period of disqualification," and that such exclusion was permissible in the context of Section 96(2)(b)(ii)1 for claiming immunity against the obligation to satisfy the judgments against the insured in respect of third party risks.

(2.) No sum shall be payable by an insurer under sub-section (1) in respect of any judgment unless before or after the commencement of the proceedings in which the judgment is given the insurer had notice through the Court of the bringing of the proceedings, or in respect of any judgment so long as execution is stayed thereon pending an appeal; and an insurer to whom notice of the bringing of any such proceeding is so given shall be entitled to be made a party thereto and to defend the action on any of the following grounds, namely :-

(3.) The view taken by the High Court has been summed up as under:-