In Brief
A tempo driver with a fake driving licence caused a fatal accident. The victim's dependents obtained a compensation award of ₹13,70,000 from a Motor Accident Claims Tribunal. The insurer sought to disclaim liability and recover the amount from the vehicle owners, claiming breach of the insurance policy condition requiring a duly licensed driver. The Delhi High Court reversed this, holding the insurer had not proven the owner knew of the fake licence or failed to exercise reasonable care. The Supreme Court dismissed the insurer's appeal, ruling that an insurer must prove willful breach by the owner to avoid liability. The mere fact of a fake licence is not itself a defence; insurers cannot impose unwritten conditions like mandatory RTO verification of licences.
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