Jammu & Kashmir High Court Rules That Possession of Dual Licences, One Fake and One Genuine, Does Not Relieve Insurer of Liability in Motor Accident Claim
In a significant judgment delivered on 28th September 2026, the Jammu & Kashmir and Ladakh High Court dismissed appeals filed by National Insurance Co. Ltd., upholding the awards of compensation to victims of a fatal road accident. The case concerned the liability of the insurer where the driver of the offending vehicle was found to possess two driving licences-one fake and one genuine.
The accident occurred on 21st January 2015 when a truck driven by Mukhter Hussain collided with a van near Vijaypur, Jammu, resulting in the death of Rakesh Kumar, the van's driver, and injuries to others. The dependents of the deceased and injured filed claims against the insurer of the truck.
The insurer contested liability on the ground that the driver's licence was fake. Investigations revealed that Mukhter Hussain held two licences: one, issued by the Licensing Authority, Anantnag, was fake; the other, issued by the ARTO, Doda, was genuine and valid on the date of the accident.
The Tribunals at Jammu and Samba examined the evidence, including testimony from licensing officials, and found the genuine licence valid and effective. The insurance company argued that possession of a fake licence should absolve them from liability. However, the High Court clarified that while holding two licences (one fake, one genuine) may contravene Section 6 of the Motor Vehicles Act and warrant prosecution against the driver, it does not breach insurance policy conditions if a valid licence existed at the time of the accident.
The Court emphasized that the insurer cannot avoid indemnity obligations merely because the driver had one fake licence when a genuine licence was also held. Therefore, the compensation awards of Rs. 13,19,600 (plus interest) to Anil Kumar's dependents and Rs. 13,55,000 (plus interest) to Rakesh Kumar's dependents were upheld, dismissing the insurer's appeals.
This judgment reinforces the principle that insurance companies remain liable to compensate victims in motor accident claims when the driver holds a valid driving licence at the time of the accident, notwithstanding the possession of any other fake licence.
Bottom Line:
Motor Vehicles Act - Insurance company cannot avoid liability merely because driver possessed one fake licence, if at the time of accident he also held another genuine and effective driving licence - Possession of two licences may attract action under Section 6 of Motor Vehicles Act, but does not by itself amount to breach of policy condition where genuine licence existed.
Statutory provision(s):
Motor Vehicles Act, 1988 Section 6, Section 149
