Insurance Coopany Liable to pay if driver has exercised due dilligence – SC

If the owner of a motor vehicle has shown due diligence while appointing a driver and examined his licence, the insurance company cannot deny the insured amount on the ground that the licence was fake. The ruling of the National Consumer Commission to the contrary in the case, Mrs Rubi Dutta vs United India Insurance Co, was set aside by the Supreme Court and the company was asked to pay Rs 2.70 lakh as compensation for the damage to a bus in an accident. The insurer argued that the driver’s license was fake. But it was a duplicate issued after following the legal procedure. The court stated...