SKANDIA INSURANCE CO. LTD. vs KOKILABEN CHANDRAVADAN & ORS.

The Supreme Court held that the exclusion clause in the insurance policy does not absolve the insurer from liability in cases where the driver was unlicensed, as per Section 96(2)(b)(ii) of the Motor Vehicles Act, 1939. The Court affirmed the principle of vicarious liability of the vehicle owner for damages arising from accidents, emphasizing the obligation under Section 84 of the Act regarding the presence of a licensed driver. The appeal by the insurance company was dismissed, reinforcing that the insurer remains liable despite the breach of policy conditions by the owner.