The employer will not be denied its claim under motor vehicle policy as per recent Supreme Court judgement if his or her driver produces fake or invalid license.

Generally, there is a condition in standard Motor vehicle act policy, which states:-

Breach of conditions under section 149(2) (a) of the motor vehicles act absolves the insurer of its liability to the insured. The section deals with the conditions regarding the driving license. In case the vehicle at the time of the accident is driven by a person who is not duly licensed or by a person who has been disqualified from holding or obtaining a driving licence during the period of disqualification, the insurer is not liable for compensation.

However, the supreme court in its latest judgement has clarified that the Insurer cannot deny the claim of the owner, if:-

The owner himself is deceived by his driver; however insurance company can always try to prove that the owner/insured was aware that the license was fake or invalid and still permitted to drive, than the insurance company may deny the claim payment.

Moreover, at first if owner sees the driving license of the driver which looks to be genuine, the employer is not expected to further investigate the matter, and in case of claim it would not be considered as the breach of section 149(2) (a), also owner would be eligible for the full claim under MV act policy unless insured’s prior knowledge regarding his driver’s fake license possession is proved by the insurer.