Insurance co can refuse claim if driver has no license

Last Updated: Tuesday, April 27, 2010 - 18:04

New Delhi: An insurance company is not
liable to pay vehicle claim if a driver does not possess a
valid driving license at the time of an accident, the National
Consumer Commission has held.

"When the driver of the insured vehicle was holding a
driving license that entitled him to drive only a light motor
vehicle, he was not entitled to drive a medium goods vehicle,
which clearly fell in the category of transport vehicle," the
Commission, comprising President Justice Ashok Bhan and Member
S K Naik, said.
The Commission passed the order on a petition of Oriental
Insurance Company rejecting the vehicle claim of one M D
Srinivasa for driving the transport vehicle despite the fact
that he was in possession of license which allowed him to
drive a light motor vehicle only.

Citing section 14(2) of the Motor Vehicles Act, a
license for a transport vehicle could be issued only for a
period of three years while the license of the driver issued
was for a period of 20 years.

"This (validity of a license for a period of 20 years)
further proves that the license of the driver authorised him
to drive only non-transport vehicle and that is also the
endorsement in his driving license," it said while setting
aside the Karnataka State Commission`s order.
The State Commission had reversed the District Forum`s
order and directed the insurance company to pay Rs 1.25 lakh
to the policy holder.

Srinivasa, possessing a license for light motor vehicle,
was found driving Eicher Cantor, a medium goods vehicle at the
time of the accident in 2002.

His claim was rejected on the ground that he was not
authorised to drive the transport vehicle.

PTI



First Published: Tuesday, April 27, 2010 - 18:04

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