The Supreme Court has ruled that an insurance company will be liable to pay compensation to a vehicle owner, even if the vehicle involved in a mishap is manned by a driver without a valid licence.

It reversed the finding of the National Consumer Commission that if a driver had no valid licence, the insurance company was not liable to pay.

Insurance cos liable even if driver's licence fake

In the case under consideration, a van was being driven by a person with a fake licence when it caught fire.

When the owner claimed damages, the district consumer forum in Bihar granted him Rs 86,000. However, the state commission reversed it on the ground that the driving licence was not valid.