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Supreme Court of India 2025-10-08 allowed

Hind Samachar Ltd. (Delhi Unit) vs National Insurance Company Ltd. & Ors

Bench: 2 — K. Vinod Chandran, N. V. Anjaria

In Brief

A truck owner was sued by its insurance company for recovery after a fatal accident involving a driver with a fake driving licence. The High Court had ruled the owner must reimburse the insurer, reasoning that the owner collided with the driver and produced the licence. The Supreme Court reversed this, holding that an insurer can only recover from a vehicle owner if it proves the owner deliberately breached policy conditions. Merely possessing a fake licence does not suffice; the insurer must show the owner knew of the falsity or willfully entrusted the vehicle despite such knowledge. The owner was not required to verify the licence with authorities. The Court upheld the Tribunal's compensation award but removed recovery rights.

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Motor Vehicles Act Insurance Law Vicarious Liability Due Diligence Breach of Policy Conditions Civil Liability Third Party Claims

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