The main legal point established in the judgment is that the insurance company's liability, the validity of the driving license, and the quantum of compensation are determined based on legal interpretations and precedents.

1. Appeal by the Insurance Company challenging the order dated 09.12.2009 of the J&K State Consumer Disputes Redressal Commission, Jammu (hereinafter for short, ‘State Commission’) rejecting the plea of the appellant-Insurance Company that they are not liable to compensate the owner of the vehicle, which vehicle got damaged in the accident because the driver of the vehicle did not have a valid driving license.

2. The 2nd issue raised by the appellant is that it is a case of over loading and, therefore, breach of contract of insurance.

3. The 3rd issue raised is on the quantum of compensation.

4. On the first plea, it is argued that in the course of hearing before the State Commission, records were produced which is Annexure-C with the present appeal, to state that the deceased-driver, who drove the vehicle which suffered an accident on an ill-fated day, did not have a valid driving license and therefore, placing reliance on Annexure-C plea is taken that the State Commission had erred in granting compensation. The condition of the policy makes it clear that the breach of condition of policy disentitles the claimant from compensation.

5. This argument is repelled by the respondent’s counsel in the following manners--

“One of the issues as is evident from record related to the driving license. It was insisted before the Tribunal that as the driver of the offending vehicle was not having a valid and effective license at the time of accident, the appellant Insurance Company was not under an obligation to indemnify the owner on account of breach of an essential condition of Insurance Policy/contract.

The Tribunal on going through the evidence brought on record answered issue No. 3 in affirmative. It held that driver of the offending vehicle was not having a valid and effective driving license at the time of accident. The Tribunal, nonetheless, held the appellant Insurance Company liable to indemnify the owner on the ground that it failed to prove that the owner of the vehicle had not been taken adequate steps while employing its driver who also lost his life in the tragic accident that he was in possession of a valid and effective driving license. The Tribunal while holding so, relied on law laid down in AIR 2008 SC 1073.”

6. Referring to paragraph No. 6 of the Award, counsel would state that there is no such pleading before the State Commission at the first instance. At the time of arguments, this document was placed and the State Commission did not accept the plea holding as follows--

“6. We fail to understand why the OP has not produced this record which is now being produced on the application made by one Mr. P.S. Chandel at proper time that is with filing of written version in order to support the plea that the license was fake. The member of the license was not found in the record of computer. It cannot be said that it was a fake license. Under the Insurance Act only a licensed investigator/surveyor has the authority to look into the claims of the parties but nothing is shown on records that Mr. P.S. Chandel had license issued in his name by the competent authority under the Insurance Act to act as an investigator. The report of RLA which is being referred by Mr. P.S. Chandel Advocate in his letter dated 15.5.08 addressed to the Divisional Manager United India Insurance Shimla is also of doubtful nature as the seal and designation of author is not legible. The Hon’ble J&K High Court in the case of National Insurance Co. v. Hardeep Singh 2007 (I) SLJ has held that “if the authority renewing the driving license is not the authority which issued the driving license it has to intimate the fact of renewing to the authority which issued the driving license-if the driving license is fake one and has not been issued by the issuing authority, which the applicant alleged to have got issued, then the issuing authority will inform the renewing authority that no such license has been issued by the said authority and if the issuing authorit