In Brief
The family of Julius D'Rocha sought compensation for his death in a motor accident that occurred on 16 June 2008. The High Court had awarded Rs 40 lakh with 9% interest, but exonerated the insurer (United India Insurance Co. Ltd.) on the ground that the truck driver's licence had expired, treating this as a fundamental breach of insurance policy. The Supreme Court allowed the appeal, holding that an expired driving licence does not automatically constitute a fundamental breach discharging the insurer's liability. The Court ruled that the insurer must satisfy the award and can thereafter seek recovery from the vehicle owner if advised to do so."
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