Insurer not liable to pay compensation for accidents if driver's licence invalid, says SC

The Supreme Court ruled that insurance companies are not liable to pay compensation if the driver's licence was invalid or not renewed at the time of the accident.

The court said that driving without a valid licence may force the driver or owner to pay compensation themselves.

A bench of Justices Sanjay Karol and N Kotiswar Singh asked the Union Ministry of Road, Transport and Highways to run a nationwide campaign on road safety and licence compliance.

The court called for urgent reforms in regulating driving schools, improving affordability, and making licensing accessible in regional languages.

The ruling set aside a Punjab and Haryana High Court order that had held the insurer liable in a 2009 accident case.