PREMKUMARI vs PRAHLAD DEV .

The Supreme Court held that under Sections 166A and 140 of the Motor Vehicles Act, 1988, the insurer cannot be held liable for compensation if the driver of the vehicle does not possess a valid driving licence at the time of the accident. The Court affirmed the High Court's decision to enhance the compensation amount to Rs. 3,50,000 while exonerating the insurance company from liability due to the driver's lack of a valid licence. The appeal was dismissed, upholding the findings of the lower courts regarding the driver's negligence and the insurance company's non-liability.