#Fake Driving Licence

An insurer must honour compensation even if the driver held a counterfeit licence, with the award raised to Rs 4,63,500 plus interest. The decision upholds the pay-and-recover rule, shifting recovery burden to the insurer. Claimants in motor accidents gain stronger protection.

HP High Court rules insurers cannot deny third-party compensation merely because the driver held a forged licence, unless the insured knowingly permitted an unlicensed driver. The burden of proof rests on the insurer to establish the insured's complicity, reinforcing strict liability for third-party claims under the Motor Vehicles Act.

Bombay High Court holds that insurer cannot escape liability under motor accident claims merely due to a fake driver's licence; proof of owner's knowledge is mandatory.