CLX-IN-MOTOR-2004-000020

National Insurance Co. Ltd. -Petitioner versus Savitri Devi & Ors. -Respondents

Supreme Court of India · 5 January 2004

Dismissed

Core ratio / Key holding

An insurance company, although liable to pay compensation to the claimant, has a right to recover the amount from the owner of the offending vehicle where the vehicle was driven without a valid and effective license at the time of the accident.

Headnote

Motor Vehicles Act, 1988 — Section 147 — Insurance — Driving without valid license — Right of recovery

Ratio decidendi

  • An insurance company, although liable to pay compensation to the claimant, has a right to recover the amount from the owner of the offending vehicle where the vehicle was driven without a valid and effective license at the time of the accident.

Important points

  • Appeal dismissed, upholding the High Court's decision that the insurance company can recover compensation from the vehicle owner if the driver lacked a valid license.

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