Reliance General Insurance Company Ltd.Vs Om Parkash & Ors. (Supreme Court of India)
Supreme Court: Insurer Gets ‘Pay and Recover’ Relief Where Driver’s Licence Was Not Valid on Date of Accident
The Supreme Court held that where the driver did not possess a valid driving licence on the date of the accident, the insurer cannot be saddled with the ultimate liability under the insurance policy. The Court found that the High Court had erred in relying on an oral statement and a letter alleging loss of licensing data due to a technical error, without any supporting official records establishing that the licence stood valid during the relevant period.
The Court reiterated that official documents must ordinarily be proved by primary evidence, and secondary evidence can be relied upon only after satisfying the statutory requirements under the Evidence Act. A mere assertion that licensing records were lost during data migration, unsupported by official records explaining the loss and recovery process, could not establish the validity of the driving licence. The payment of a penalty for delayed renewal also indicated a break in the licence’s validity, undermining the driver’s claim.
The Supreme Court further emphasised that the owner of a vehicle has a continuing duty not only to verify that the driver holds a valid licence at the time of employment but also to ensure that it is renewed before expiry. Failure to discharge this statutory responsibility amounts to a breach of the insurance policy conditions.
Applying the principle of “pay and recover”, the Court directed the insurer to satisfy the compensation awarded to the victims and thereafter recover the amount from the driver and the vehicle owner in accordance with law. The Court also urged the Central and State Governments to undertake awareness campaigns on the importance of maintaining valid driving licences and to simplify the process of licence issuance and renewal.
Cases Discussed
- Beli Ram v. Rajinder Kumar (SC), 2026 SCC OnLine SC 169
- Telangana State Level Police Recruitment Board v. Penjarla Vijay Kumar (SC), 2025 SCC OnLine SC 2915
- Penjarla Vijay Kumarv. T. Ushakrishnan (SC), (2023) 4 SCC 731
- National Insurance Co. Ltd. v. Hem Raj, (2022) 15 SCC 572
- Neeraj Dutta v. State (NCT of Delhi) (SC)
- National Insurance Co. Ltd. v. Swaran Singh (SC), (2004) 3 SCC 297 : 2004 SCC (Cri) 733
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
1. Leave Granted.
