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Issues: Whether a driving licence, originally fake, could become valid on renewal under the Motor Vehicles Act, and whether the insurer remained liable where the driver held such a renewed licence.
Analysis: Section 15 of the Motor Vehicles Act permits renewal of a driving licence and does not exclude renewal merely because the original licence was fake. The provision also contemplates medical requirements in appropriate cases. Once renewed, the licence acquires validity under the statutory scheme. If an accident is caused by a driver employed by the insured and he was holding a duly renewed licence, the insurer is liable to reimburse the insured.
Conclusion: A fake licence, once duly renewed, becomes valid for the purposes of liability under the Act, and the insurer is liable to indemnify the insured.