In Brief
The widow of a vehicle owner claimed insurance compensation after a fatal car accident involving a driver with an allegedly fake driving license. The insurer denied the claim under Section 149(2)(a)(ii) of the Motor Vehicles Act, 1988 (unlicensed driver). The Supreme Court allowed the appeal, holding that while insurers may raise the unlicensed driver defence, they must prove willful negligence by the insured. The Court held that an employer need only verify a license appears valid and assess driver competence—not verify authenticity with the RTO—unless notified otherwise. Since the insured had checked the license and the driver was competent, the insurer remained liable despite the license later proving fake.
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