Insurance Company Denied Car's Insurance Claim due to Invalid Driving Licence

25th May, 2014: The claim made by a tourism firm has been denied by the insurance company due to fake driving license that the driver was carrying at the time of accident. The plea of a tourism firm has been rejected by a consumer forum seeking direction to an insurer for payment of the insured amount of its car, which in 2010 met with an accident, because of the invalid driving license of the driver.

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The order has been passed by the South Delhi Consumer Disputes Redressal Forum which is presided over by M C Mehra. The firm had claimed the insurer to pay Rs 90,017 as the car was insured.

The forum alongwith comprising members, Anjum Parveen Alam & S R Agarwal said that the driving license was found to be not a genuine one as no driving licence in his name was ever issued. Therefore, it is a violation of the terms and conditions of the policy that shows that the driver must hold an effective driving licence. As per the record of the licencing authority office, no driving licence was issued in the name of Narayan Haldar who was driving the car at the time of the accident.

The forum has been told by the tourism company that the car was insured with the insurer for a depreciated value of Rs 4,19,574 for a period from June 30, 2010 to June 29, 2011. On November 24, 2010, the vehicle met with the accident.

Besides Rs 20,000 as the cost of litigation, the tourism company had also sought a compensation of Rs 80,000 in its plea before the consumer forum.

The insurer informed the company that the driving licence of the driver at the time of accident was invalid and therefore the insured amount can't be paid.

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