Pay Rs1.9 lakh for car accident, insurer told

By Rebecca Samervel

Mumbai: The state consumer commission on Wednesday ruled in favour of a complainant after an insurance company rejected his car accident claim on the ground that he had not renewed his driving licence at the time of the accident. The state commission cited an earlier National Consumer Disputes Redressal Commission order in another case in which it had said, "There was no nexus between the absence of licence and accident and therefore the insured was entitled to receive the insurance amount of claim on non-standard basis."

Reliance General Insurance Co will have to pay the complainant, Mulund-based Shirish Natu, Rs 1.9 lakh in lieu of the damage caused to his car.

Natu filed the complaint before the Maharashtra State Consumer Disputes Redressal Commission in 2011 after a district forum dismissed his complaint on April 30, 2011. He had procured the insurance claim for his car and it was valid from January 22, 2008, to January 21, 2009. On July 3, 2008, the car met with an accident, injuring him and also causing damage to the vehicle.

The district forum, while dismissing the complaint, had held that Natu had not renewed the license after March 3, 1999, and therefore on the date of the accident, the complainant did not have an effective and valid driving licence.
While the cost of the total damage to the vehicle worked out to around Rs 2.6 lakh, it was insured for Rs 1.9 lakh. Natu sought reimbursement of this amount, which the insurance company rejected, forcing him to file the complaint.

The insurance company gave its reply and said that Natu was not entitled to any compensation since the driver did not hold a valid driving licence. The company said this was a breach of the policy's terms and conditions.

The commission, though, pointed out the fact was not that the insured was debarred from holding a driving licence or was not qualified to hold such a licence. "Therefore, in view of the judgments of the National Commission, we find that the appellant should have been ordered to be compensated on non-standard basis," the commission said.


Source: The Times of India