Pepsu Road Transport Corp vs National Insurance Co

The Supreme Court ruled that under Section 149(2)(a) of the Motor Vehicles Act, 1988, an insurer is absolved of liability if the vehicle is driven by a person without a valid driving licence. In this case, the driver possessed a fake licence, leading to the insurance company's non-liability for compensation. However, the Court noted that the employer had taken reasonable steps to verify the licence, and the insurer failed to prove the licence was fake beyond doubt, thus allowing the appeal of the vehicle owner, PRTC.