In Brief
Nirmala Kothari's husband died in a car accident in 2010. The insurance company (United India Insurance) rejected two accident claims on the ground that the driver lacked a valid driving licence. The Supreme Court held that an insurer cannot repudiate a claim merely because the driver's licence was invalid. The insured had checked the licence and found it apparently genuine; the insurer must prove the insured acted negligently or with willful breach. Since the appellant had verified the driver's credentials and had no reason to doubt the licence's authenticity, the insurer remained liable. The appeals were allowed and the company ordered to pay compensation.
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