Minors Without Licenses Leave Vehicle Owners Responsible and, Causing Accidents Not Covered Under 'Pay and Recover'

Minors Without Licenses Leave Vehicle Owners Responsible and, Causing Accidents Not Covered Under ‘Pay and Recover’

By- Ganesh Vajrapu, Alliance University.

The Karnataka High Court held that the vehicle owner, not the insurance company, is liable for damages resulting from accidents caused by minor drivers. In a case involving a 16-year-old boy who caused an accident while driving a motorcycle, Justice Hanchate Sanjeev Kumar’s single-judge bench overturned a tribunal’s decision that had held the insurance company liable. The court highlighted that the “pay and recover” principle is inapplicable to minors as they are not permitted to possess driver’s licenses. The insurance company argued it was not liable since the driver was unlicensed. The claimants, however, claimed the owner was driving. The court found no corroborative evidence supporting the owner’s claim and noted that police records confirmed the minor was driving.[1]

The High Court made key observations:

A minor under 16 cannot be considered a qualified person to apply for a driving license and does not fall under the category of being “not duly licensed” per Section 149(2)(ii) of the MV Act[2]. The “pay and recover” principle does not apply when a minor drives and causes an accident. The court increased the compensation from Rs. 2,56,000 to Rs. 4,44,972 and ruled that Mohammad Mustapa, the owner of the two-wheeler, must pay the compensation to the claimants[3].

References:

[1] Plumber, M. (2024) Pay and recover principle not applicable if minor involved in causing accident, owner liable to compensate claimants: Karnataka High Court, Live Law. Available at: https://www.livelaw.in/high-court/karnataka-high-court/karnataka-high-court-ruling-minor-driver-motor-vehicle-compensation-owner-liable-pay-and-recover-principle-260133 (Accessed: 14 June 2024).
[2] Section 149(2)(ii), Motor Vehicles Act, 1988.
[3] Law Trend (2024) Pay and recover principle not applicable if minor involved in accident: Karnataka HC, Law Trend. Available at: https://lawtrend.in/pay-and-recover-principle-not-applicable-if-minor-involved-in-accident-karnataka-hc/ (Accessed: 14 June 2024).