UNITED INDIA INSURANCE CO LTD vs GIAN CHAND

The Supreme Court held that under the Motor Vehicles Act, the insurance company is exonerated from liability when the insured permits an unlicensed driver to operate the vehicle, as per the exclusion clause in the insurance policy. The Court affirmed the Motor Accident Claims Tribunal's finding of rash and negligent driving by the driver, respondent No.1, and rejected the owner's claim that he had sold the vehicle. Consequently, the insurance company's liability was negated, and the claim for compensation was upheld against the driver and the vehicle owner.