Claim can’t be denied on basis of fake driving licence, says panel

Tribune news service

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Chandigarh, September 8

An insurance company cannot deny claim of the insured vehicle on the ground that the driver was in possession of a fake driving license, observed the Consumer Commission while directing the insurance firm to pay the claim amount to the complainant.

The commission also directed the company to pay Rs15,000 compensation to the complainant for causing him mental agony and harassment, besides paying Rs7,000 as litigation expenses.

Ramesh Chand, a resident of Kalka, in his complaint had said his transport vehicle was insured with United India Insurance Company Limited under a policy which was valid from August 12, 2016 to August 11, 2017.

Chand said he hired a driver, namely Saran Dass, with a valid driving licence issued by the Government of Nagaland. The licence was valid till April 21, 2018. An NOC for its renewal had also been issued by the DTO, Tuensang, Nagaland.

The insured vehicle met with an accident at the Sangla Valley in Kinnaur Hills. As a result, the vehicle was totally damaged and driver died on spot.

An FIR was registered on September 26, 2016 at the Sangla police station Sangla in Himachal Pradesh.

The insurance company repudiated claim vide letter dated October 16, 2017, stating that driver of the vehicle – Sharan Dass – did not possess a valid driving license at the time of accident.

The driving license was found to be fake as no record was available with the DTO, Tuensang, Nagaland.

Chand approached the commission. The insurance company in its reply stated that the driving license of the driver was found to be fake. Therefore, the claim of the complainant was repudiated.

The commission said though the driver was found to have possessed a fake driving licence, it was not a valid reason for denying the claim.