Private Investigator's Report Insufficient To Prove Driver's Licence Was Fake, Insurer Must Examine Licensing Authority: Rajasthan High Court

The Rajasthan High Court has held that an insurance company cannot avoid liability on the ground that the driver of the offending vehicle possessed a fake driving licence unless it proves the allegation by examining the concerned licensing authority.

Justice Ashutosh Kumar was hearing two appeals filed by the National Insurance Company Limited challenging an award passed by the Motor Accident Claims Tribunal, Sikar, in favour of the claimants. The insurer had contended that there had been a breach of the insurance policy as the driver of the offending vehicle did not possess a valid driving licence at the time of the accident.

To substantiate its claim, the insurance company relied on the testimony of an investigator, who had found during the course of his inquiry that the driving licence produced by the driver had allegedly not been issued by the District Transport Office, Guwahati. On that basis, the insurer argued that it could not be saddled with liability under the award.

Opposing the plea, counsel for the driver submitted that the insurance company was duty-bound to establish, through proper evidence, that the licence had not been issued by the competent authority. It was argued that the licence could not be presumed to be fake merely on the basis of the investigator's statement.

Accepting the submission, the Court noted that the insurance company had failed to summon the licensing authority to verify whether the licence in question had actually been issued by it. The Court observed:

“…Insurance Company did not try to call the licencing authority to prove or verify the fact that the driving licence attached as Exhibit-10 was not issued by it. Therefore, while relying upon the judgment passed by a Co-ordinate Bench of this Court in case of Moda Ram & Ors. (supra), in the present case, it cannot be presumed that the driving licence issued in favour of the respondent-driver was a fake one as the Insurance Company failed to call the licencing authority to prove or verify the fact that such authority did not issue that licence.”

The Court relied on the earlier decision in United India Insurance Company Ltd. v. Moda Ram & Ors., wherein it was held that a fact cannot be presumed in the absence of evidence proving it.

Finding no merit in the insurer's contention regarding breach of policy conditions, the Court dismissed both appeals.

Title: National Insurance Company Ltd. v Parmeshwar & Anr., and other connected appeal

Citation: 2026 LiveLaw (Raj) 293

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