ORIENTAL INSURANCE CO.LTD. vs ZAHARULNISHA .

The Supreme Court held that under Section 149(2) of the Motor Vehicles Act, 1988, an insurance company is not liable to pay compensation if the driver of the vehicle does not hold a valid driving license for the class of vehicle involved in the accident. The Court found that the driver, Ram Surat, was only licensed to drive Heavy Motor Vehicles and thus could not legally operate the two-wheeler scooter that caused the accident. Consequently, the appeal by the insurance company was allowed, overturning the High Court's dismissal of their challenge to the compensation award.