The insurer and insured are bound by the conditions enumerated in the policy and the insurer is not liable to the insured if there is violation of any policy condition.
The Insurance Company would not then be above of liability. If it 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 notice 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 Skiandia’s Sohan Lal Passi’s and Kamla’s case We are in full agreement with the views expressed therein and see no reason to take a different view."
United India Insurance Company Ltd., v. S.Saravanan reported in 2009 (2) TNMAC 103 (DB), a Division Bench of this Court, after considering a catena of decisions, at Paragraph 22, held that,
a Division Bench of this Court, after considering a catena of decisions, at Paragraph 22, held that,
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