Insurers must verify driving licenses before issuing policies; failure to do so prevents them from repudiating claims based on license validity.

1. Instant appeal is arising out of the order dated 3.9.2022 passed by Learned District Consumer Commission, Kangra at Dharamshala, in Consumer Complaint No. 94/2022 titled Smt. Madhubala & Ors. v. Bajaj Allianz General Insurance Company & Ors.

2. Brief facts of Case:

Brief facts of the case are that the complainants are legal heirs of late Sh. Prem Singh, who expired on 25.8.2021. Late Sh. Prem Singh was owner of TVS Jupiter having registration No. HP - 38G - 4772. The said TVS Jupiter was insured with opposite parties No. 1 & 2 / Insurance Company and paid Rs. 3,616 as premium of insurance. The policy was effective w.e.f. 23.7.2021 to 22.7.2022. On 23.8.2021, the said vehicle met with an accident, in which, predecessor - ininterest of complainants Sh. Prem Lal sustained serious injuries and ultimately on 25.8.2021 died at Amandeep Hospital Pathankot. FIR to this incident was lodged. The opposite parties had received premium for personal accident claim, but opposite parties / Insurance Company refused to pay the personal accident claim and repair charges of vehicle, i.e. Rs.15,15,500 to the complainants on the ground that deceased was not having valid license for driving two wheeler class of vehicle at the time of accident. Hence, the present complaint.

3. The opposite parties No. 1 & 2 / Insurance Company contested the complaint by filing reply and stated that at the time of accident on 23.8.2021, the deceased late Sh. Prem Singh was not having valid and effective driving licence to drive such type of vehicle. Driving License was valid for driving PSV Bus and not for driving motorcycle. As deceased was not having valid and effective driving licence at the time of accident, the claim is rightly repudiated as there was violation of terms & conditions of insurance policy. A prayer for dismissal of complaint was made.

4. The opposite party No. 3 failed to appear before District Commission below and was proceeded ex parte.

5. No rejoinder was filed on behalf of complainants.

6. Thereafter, the parties led evidence in support of their respective pleadings.

7. After hearing the parties, learned District Commission allowed the complaint against the opposite parties No.1 and 2 / Insurance Company.

8. Feeling aggrieved by the order of learned District Commission, the appellants / Insurance Company preferred the instant appeal before this Commission.

9. We have heard learned Counsel of the parties and have also gone through the record carefully.

10. Learned Counsel of the appellants / insurance company has submitted that the deceased / insured was owner of TVS Jupiter scooty bearing No. HP - 38G - 4772. The deceased / insured has also taken P.A. Cover (Personal Accident Cover) for a sum of Rs. 15,00,000 which was effective w.e.f. 23.7.2021 to 22.7.2022. He further submitted that on 23.8.2021, the vehicle in question met with an accident and deceased suffered multiple injuries and thereafter succumbed to injuries. The claim was lodged with the appellants / insurance company for Personal Accident as well as to the Own Damage claim. The claim was repudiated by the appellants / Insurance company vide letter dated 30.9.2021 on the ground that the deceased was not having valid and effective driving license as he was having license to drive PSV vehicle i.e. heavy transport vehicles, but was not having any endorsement to drive scooty. In the instant case, the deceased was not having driving license to drive the scooty in question. He has also relied upon the judgments of Hon'ble National Commission in case titled (i) National Insurance Co. Ltd. v. Pitamber , Revision Petition No. 2730 of 2010, d