Udupi: 'No insurance if driving licence not valid' - Consumer court


Daijiworld Media Network - Udupi (SP)
 
Udupi, Feb 26: The consumer court here has ruled that no insurance amount is payable if the vehicle which met with the accident was not driven by a person having a valid driving licence. It held that the insurance company is not liable to disburse personal accident insurance if the person's driving licence was not valid at the time of the accident. 
 
Chandrashekhar Shetty (48) from Kalthodu village, Byndoor,  was driving his car on May 25, 2019, when his car hit a roadside tree near Golihole as a wild boar suddenly crossed his path. Shetty, who had suffered grievous injuries, had died on the spot. 
 

Representational image
 
The car was insured with Royal Sundaram Insurance company. Legal heirs of the deceased had filed a claim for personal insurance amount of Rs 15 lac. The company had rejected the claim on the basis that the deceased did not have a valid driving licence at the time of the accident. 
 
Shetty's wife and children then filed a complaint in Udupi District Consumer Disputes Redressal Forum (consumer court), seeking directions to the insurance company to disburse personal accident insurance claim amount along with costs. The consumer court found that the driving licence of the deceased had been renewed till January 1, 2016, and he was not in possession of a valid driving licence at the time of the accident. The advocates of the insurance firm also relied on this argument during the hearing.  The court upheld this argument and said that the insurance company is not liable to pay compensation as the deceased did not have a valid driving licence.
 
H Anand Madiwala had argued the case on behalf of the insurance company.

 

 
 
 
  

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Comment on this article

  • Sanjay, Hebri

    Fri, Feb 26 2021

    Insurance companies take premium and don't pay. In this case how did insurance company issue policy when his license was lapsed in 2016? Don't they need to check when taking premium?

    DisAgree [3] Agree [6] Reply Report Abuse

  • Charles D'Mello, Pangala

    Fri, Feb 26 2021

    Owner of the car may or may not have a valid license. But the driver of the car has to have a valid license. This is the norm.

    DisAgree [1] Agree [6] Reply Report Abuse

  • Robin, Byndoor

    Fri, Feb 26 2021

    If for any reason he had not renewed his license, then some fine could be imposed. Is it OK to get the Insurance Premiums for not having the VALID driving license ? Insurance companies are also clever in that regard. The dependents of the person who correctly paid Insurance lost him, Car, Insurance also. They should put a big banner displaying : "You won't get Insurance by Royal Sundaram if you don't have Valid Driving License... But you have no problem to pay Premiums though you don't have valid license.." It is the fate today to fight for all reasons and for small mistakes... Except LIC all insurances promptly warn us many times if premium paying dates are nearby. Why don't we have no warnings by RTO that your driving license is about to expire ????? Because they don't get much benefit. Money matters...

    DisAgree [2] Agree [4] Reply Report Abuse

  • Sanjay, Hebri

    Fri, Feb 26 2021

    Even insurance company is at fault, they didn't check his insurance at the time of taking Premium as it was lapsed in 2016 it self.. Questionable judgement, hope HC rectifies it.

    DisAgree [2] Agree [3] Reply Report Abuse

  • Sanjay, Hebri

    Fri, Feb 26 2021

    * check his license

    DisAgree [1] Agree [1] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Fri, Feb 26 2021

    Does that mean a Invalid Person can never own a Car ,,,

    DisAgree Agree [3] Reply Report Abuse


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Title: Udupi: 'No insurance if driving licence not valid' - Consumer court



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