NATIONAL INSURANCE COMPANY LTD. vs MEENA AGGARWAL

The Supreme Court upheld the decision of the National Consumer Disputes Redressal Commission, affirming that the insurance claim was valid despite the vehicle being used commercially and the driver lacking a valid license. The Court referenced Section 3 of the Motor Vehicles Act, which mandates that a driver must hold an appropriate license for the vehicle type. The ruling established that while the driver’s lack of a valid license constitutes a breach, it does not amount to a fundamental breach of the insurance policy terms, thus allowing for partial compensation to the insured.