Motor insurance: Driving with expired licence can lead to claim rejection

While a 30-day grace period is available for licence renewal, the Motor Vehicles Act of 2019 clearly states that driving with an expired licence is not permitted-even if renewal is pending

The National Consumer Disputes Redressal Commission (NCDRC) has ruled that an insurance claim may be lawfully denied if the driver of the insured vehicle did not hold a valid driving licence at the time of the accident.

 

In the case under review, the complainant’s vehicle—insured with National Insurance Company—was involved in an accident during the policy period. The vehicle was completely damaged, and the driver died. The insurer rejected the claim on the grounds that the driver’s licence had expired.

 

The District Commission in Guna, Madhya Pradesh, had directed the insurer to pay 75 per cent of the claim amount.