Motor Accident Claims | Fake License By Driver Doesn't Absolve Insurer Unless Vehicle Owner Knowingly Allowed Breach : Supreme Court

The Supreme Court addressed insurer liability in motor accident claims where the driver held a forged or fake licence. Analysing the scope of policy exclusions and the doctrine of vicarious liability, the Court held that a fake licence in the driver's name does not automatically absolve the insurer of liability; the critical inquiry is whether the vehicle owner “knowingly and with consent” allowed the breach of policy terms by permitting an unlicensed or impersonating driver to operate the vehicle. Where the owner had actual knowledge or had permitted the breach deliberately, insurer defenses gain traction; absent such owner culpability, public policy and the compensatory object of motor accident legislation favour upholding claimants’ rights to compensation. The ruling balances the insurer’s contractual defenses with social welfare considerations, reiterating that strict technicalities should not defeat legitimate claims where owner culpability is not established beyond record evidence.