Can my older brother be policy holder of insurance when I am the owner of the car?
Yes this is correct. Your brother is not the owner of the vehicle, therefore he has no insurable (financial) interest in the vehicle. Therefore when the accident happened your brother had to show what his financial loss was. Since you are the owner of the vehicle you have to authorize repairs to the vehicle therefore you are financially responsible to pay for the damages to your vehicle. Your brother is not, therefore the insurance company does not have to pay out on the loss. Next time the registered owner of the vehicle is the one who should take out the policy. The policy is being canceled because any auto insurance application will ask if the applicant is the registered owner of the vehicle. If he said yes then he lied and is subject to being canceled for misrepresentation. As for the points and fine since you did not say what the fine is for I cannot comment on what to do about it.
