The Supreme Court on Thursday ruled that insurance companies cannot be held liable to pay compensation in motor accident cases if the offending vehicle was being driven without a valid or renewed driving licence at the time of the accident, while urging the Centre and states to launch a nationwide awareness campaign on the importance of maintaining valid licences.
A bench of Justices Sanjay Karol and N Kotiswar Singh said that driving without a valid licence could leave vehicle owners and drivers facing substantial compensation liabilities in accident cases, underscoring the need for stricter compliance with licensing norms.