NATIONAL INSURANCE CO. LTD. vs TULNA DEVI .

The Supreme Court held that under Section 149(2)(a)(ii) of the Motor Vehicles Act, the Insurance Company cannot avoid liability for compensation due to the driver's disqualification or invalid driving license unless it proves negligence on the part of the insured. The Court emphasized that mere absence or invalidity of the driving license does not absolve the insurer of its liability towards third parties. The appeals were dismissed as the Insurance Company failed to provide evidence of negligence by the vehicle owner in ensuring the driver was duly licensed.