National Insurance Co. Ltd vs Tulna Devi & Ors

The Supreme Court held that under Section 149(2)(a)(ii) of the Motor Vehicles Act, the Insurance Company must prove that the insured was negligent in allowing an unlicensed driver to operate the vehicle to avoid liability. The Court emphasized that mere absence of a valid driving license does not automatically absolve the insurer of its responsibility towards third-party claims. In this case, the Insurance Company failed to provide evidence of negligence on the part of the vehicle owner, leading to the dismissal of the appeals without costs.