In Brief
The Supreme Court decided a motor accident compensation case involving the death of Julius D' Rocha. The family was awarded Rs. 40 lakhs. The key issue was whether an insurance company could escape liability because the truck driver's licence had expired two months before the accident, unknown to the vehicle owner. The Court held that mere expiry of the licence, without the owner's knowledge and without the owner contesting to prove lack of knowledge, does not constitute a fundamental breach of insurance policy. The insurer remains liable to pay compensation and may recover from the vehicle owner thereafter if advised.
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