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Accident: insurance firm ordered to pay compensation

By Our Staff Reporter

THIRUVANANTHAPURAM June 27. The Oriental Insurance company, which refused to pay an accident insurance claim because the licence of the driver of the said vehicle had expired and not been renewed at the time of the accident, has been ordered to settle the claim.

The State Consumer Disputes Redressal Commission here, presided by T. M. Hassan Pillai, gave this order while dismissing an appeal petition filed by the insurance company, against an order of the district consumer forum.

The District Consumer Disputes Redressal Forum had earlier directed the insurance company to pay Rs. 14,500 as repair charges, Rs. 2,500 as compensation and Rs. 1,000 as costs to the complainant. It is this order which has been upheld by the State Commission.

A Maruti van, belonging to G. Sreedevi Amma of Poojappura, had been insured with the Oriental Insurance company and the policy had been valid from February 10, 1998 to February 9, 1999. The car was insured under a comprehensive insurance policy, issued under the scheme "Total Car Care'' policy, jointly sponsored by Oriental Insurance and M/s Popular Vehicles and Services.

The said car met with an accident on April 12, 1998 and it sustained damages in the front portion. The complainant got it repaired with M/s Popular Vehicles, for Rs. 16,144.53.

When the complainant made a claim for the reimbursement of this amount, the insurance company rejected the claim on the ground that the driver of the vehicle did not hold a valid licence at the time of the accident.

The insurance company pointed out before the State Commission that the driver's licence had expired on March 6, 1998 and that he had not applied for renewal of licence within the next 30 days. His licence, later renewed, was effective only from April 16, 1998. Hence, at the time of the accident, the driver did not possess a `valid and effective' licence, which was a violation of the policy condition.

However, the complainant's counsel argued that though the driver's licence was renewed only from April 16, 1998, he had not been disqualified from holding or obtaining a licence at the time of the accident. Even if it is held that the driver had applied for renewal of his licence 30 days after its expiry, the insurance company has no material to prove that he was disqualified in any way to hold the licence.

It was argued that the exclusion term of the insurance policy should be read down, so as to serve the main purpose of the policy, which is to reimburse for the damage caused to the vehicle.

The State Commission, after referring to the decisions in similar cases by the Supreme Court and the High Court of Punjab and Haryana, held that there is no violation of policy conditions.

The insurance company was directed to pay the complainant, the amounts that the district forum had earlier awarded.

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