Second-driver exclusion clause — not covered under policy
A motor policy that limits the cover to a named driver — the "named-driver-only" or "second-driver-excluded" endorsement — is a familiar feature on small-fleet, family-car and tractor policies. The clause produces a coverage gap when an unnamed driver causes an accident. The Motor Vehicles Act, 1988 cuts this gap in two. For own-damage and for the contractual cover that the policy carries on top of the statutory minimum, the insurer can decline indemnity on the basis of the breach. For the compulsory third-party cover under Section 147, the position is narrower — the insurer's statutory defences are exhaustively listed in Section 149(2), and the bar against unauthorised driving is limited to defined cases. The Supreme Court in New India Assurance Co Ltd v Suresh Chandra Aggarwal , AIR 2009 SC 2987 read the third-party-cover obligation strictly, and the larger framework laid down in National Insurance Co Ltd v Swaran Singh , (2004) 3 SCC 297 governs the pay-and-recover route. This guide maps the gap, the route, and the documents that decide the case.