United India Insurance Company Ltd vs Lehru And Ors on 28 February, 2003
The Insurance Company would not then be absolved of liability. It if ultimately turns out that the licence was fake the Insurance Company would continue to remain liable unless they prove that the owner/insured was aware or had noticed that the licence was fake and still permitted that person to drive. More importantly even in such a case the Insurance Company would remain liable to the innocent third party, but it may be able to recover from the insured. This is the law which has been laid down in Skanadia's Sohan Lal Passi's and Kamla's cases. We are in full agreement with the views expressed therein and seen no reason to take a different view.