The High Court of Kerala ruled that it is the responsibility of the employer to ensure that his driver holds a valid and effective driving licence, and failure to do so would constitute a clear breach of insurance policy conditions absolving the insurer of liability

Justice K. Manmadha Rao made these observations while upholding an order of a civil court in Mangaluru in awarding compensation of ₹5.38 lakh with 12% interest per annum under the Workmen Compensation Act, to the legal heirs of a school bus driver, who had died in 2008 after the bus fell into the Phalguni River near Mangaluru. A total of 11 persons, including seven children, had died in the accident.

Appeal

The head master of Balmy Primary School, Thenkulipady, Mangaluru taluk in Dakshina Kannada district, had filed an appeal against the award passed by the civil court in 2015 in favour of Mariyamma, wife of the deceased driver, Badruddin, and her two minor children.

The insurance company, Bajaj Allianz General Insurance, had declined to pay compensation under the WC Act while contending that Badruddin was driving the bus, owned by the school, on the date of the accident, August 14, 2008, even though his driving licence expired on June 17, 2008.

The insurance company had claimed that the compensation under the WC Act had to be paid by the employee as the school’s head master, in whose name the bus was registered, was negligent in not ensuring the renewal of driving licence of the driver and hence violated the condition of insurance.

Apex court order

The insurance company had relied on the 2020 judgement of the apex court, in the case of Beli Ram vs Rajendra Kumar and others, which had said that ensuring that the driver possesses a valid driving licence and it is renewed timely is part of the care to be taken by the employer to protect the interest of his employee, the driver under the Workmen Compensation Act.


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