Saturday, 11 July 2026

Supreme Court: Whether Insurance Company is liable to pay compensation if motor accident is done by driver who is minor child?

Section 4 of the Motor Vehicles Act prohibits driving of a vehicle by any person under the age of eighteen years in any public place. Section 5 of the Act imposes a statutory responsibility upon the owners of the motor vehicles not to cause or permit any person who does not satisfy the provisions of Sections 3 or 4 to drive the vehicle. {Para 15}


16. The vehicle in question admittedly was being driven by Karan Arora who was aged about fifteen years. The Tribunal, as noticed hereinbefore, in our opinion, rightly held that Karan Arora did not hold any valid licence on the date of accident, namely 5.2.1997.


17. The learned single Judge as also the Division Bench of the High Court did not put unto themselves a correct question of law. They proceeded on a wrong premise that it was for the Insurance Company to prove breach of conditions of the contract of insurance.


18. The High Court did not advert to itself the provisions of Sections 4 and 5 of the Motor Vehicles Act and thus misdirected itself in law.


19. This aspect of the matter has been considered by this Court in Oriental Insurance Co. Ltd. v. Prithvi Raj   MANU/SC/0685/2008 : AIR2008SC1408 wherein upon taking into consideration a large number of decisions, it was held that the Insurance Company was not liable.

 IN THE SUPREME COURT OF INDIA

Civil Appeal No. 5876 of 2008 

Decided On: 24.09.2008

United India Insurance Co. Ltd. Vs. Rakesh Kumar Arora and Ors.

Hon'ble Judges/Coram:

S.B. Sinha and Cyriac Joseph, JJ.

Citation: 2008 INSC 1087,MANU/SC/8090/2008,2009 AIR SC 24.
Read full judgment here: Click here.
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