KAMALA MANGALAL VAYANI vs M/S. UNITED INDIA INSURANCE CO. LTD.&ORS

The Supreme Court held that under the Motor Vehicles Act, 1988, the burden of proof regarding the validity of a vehicle's permit lies with the insurer when it denies liability under a comprehensive insurance policy. The Court found that the insurer failed to establish that the vehicle did not have a valid permit at the time of the accident, thus reversing the High Court's decision that absolved the insurer of liability. The Court reinstated the Tribunal's awards for compensation to the claimants, affirming the principle that the insured's liability is not negated by the absence of a permit unless proven otherwise by the insurer.