Mumbai: The Maharashtra State Consumer Disputes Redressal Commission (SCDRC) has dismissed an appeal filed by Liberty General Insurance Limited, upholding an earlier order directing the company to pay compensation to the family of a deceased farmer from Ahmednagar. The insurance firm had challenged the payout, citing the farmer’s lack of a valid driving licence at the time of the accident.
The case pertains to the death of Nagesh Babruvan Shete, who died in a road accident while riding a two-wheeler. The insurer had rejected the claim filed by Shete’s widow, Smt. Sadhana K. Lolage, on grounds that the deceased did not possess a valid driving licence authorizing him to operate the vehicle.
In its appeal, Liberty General Insurance contended that the absence of a proper licence was a breach of policy conditions and that the District Consumer Forum, Central Mumbai, had erred in ordering a payout of Rs 1 lakh along with 12% annual interest from February 21, 2015, and Rs 3,000 towards litigation costs.
However, the SCDRC bench, comprising Justice S.P. Tavade (President) and Member Vijay C. Premchandani, ruled that the District Forum’s order was well-reasoned and did not merit interference. The commission observed that the scheme under which the farmer was insured — a government-initiated personal accident insurance scheme — was benevolent in nature and meant for the welfare of farmers and their families.
Referring to the relevant Government Resolution (GR) dated December 4, 2009, the commission emphasized that the requirement of a valid licence was not listed among the mandatory documents for claim processing. Further, the GR clarified that the benefit should not be denied unless the accident occurred due to the fault of the driver — a claim the insurer failed to substantiate.
Citing precedents including the Supreme Court’s ruling in National Insurance Co. Ltd. vs Swaran Singh, the commission reiterated that unless the lack of licence directly contributed to the accident, insurers cannot deny liability purely on technical grounds.
“The accident and the death of the insured were not shown to have occurred due to any fault attributable to the deceased’s lack of driving licence,” the order stated. “There is no nexus between the absence of a licence and the accident.”
Accordingly, the SCDRC dismissed the appeal, directing Liberty General Insurance to comply with the District Forum’s order and pay the insured amount to the complainant. The commission did not impose additional costs in the appellate order.
