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 driver of the vehicle is not duly licensed or is disqualified from holding a license. In this case, the driver was found to possess a fake driving license, leading to the insurance company's exemption from liability for compensation awarded to the claimants. The Court held that despite the owner's claims of having taken reasonable steps to verify the license, the insurer's liability was not established due to the driver's lack of a valid license.