FAKE DRIVING LICENCE AND INSURANCE CO.'S LIABILITIES

Fake licence and insurance co’s liabilities:

Conclusion of subject matter:

To avoid its liability towards insured, the insurer has to prove that the insured was guilty of negligence and failed to exercise reasonable care in the matter of fulfilling the condition of the policy regarding the use of vehicles by a duly licensed driver or one who was not disqualified to drive at the relevant time.

Mere absence, fake or invalid driving licence or disqualification of the driver for driving at the relevant time, are not in themselves defences available to the insurer against either the insured or the third parties.

Even where the insurer is able to prove breach on the part of the insured concerning the policy condition regarding holding of a valid licence by the driver or his qualification to drive during the relevant period, the insurer would not be allowed to avoid its liability towards insured unless the said breach or breaches on the condition of driving licence is/ are so fundamental as are found to have contributed to the cause of the accident. The Tribunals in interpreting the policy conditions would apply "the rule of the main purpose" and the concept of "fundamental breach" to allow defences available to the insured under section 149(2) of the Act.

Reference Judgments for Video

1 SKANDIA INSURANCE CO. LTD. V. KOKILABEN 

CHANDRAVADAN01/04/1987 

2 PEPSU ROAD TRAN. V.S NATIONAL INSURANCE CO.LTD. 17/07/1996

3 SOHAN LAL PASSI VS. P.SESH REDDY -17/07/1996 

4 UNITED INDIA INSURANCE COMPANY LTD. V. LEHRU 28/02/2003

5 NATIONAL INSURANCE CO.LTD. V.S SWARAN SINGH 05/01/2004

6 NATIONAL INSURANCE CO. LTD. V. GEETA BHAT31/03/2008

7 NIRMALA KOTHARI V. UNITED INDIA INSURANCE CO.LTD. 8/4/2020