Insurance companies must validate driving licenses to avoid liability under insurance contracts, strengthening consumer protection rights.

Consumer Protection Act, 1986 Sections 2 (1)(g), 14(1)(d) and 21(b) Consumer complaint - Accident of insured vehicle - Death of passenger in vehicle Repudiation of claim by insurance company - Complaint filed before Dist. Forum alleging deficiency in service - Complaint dismissed Appeal against same partly allowed Hence, present revision Insurance claim in the present case cannot be allowed under the category of owner- driver or under the clause relating to unnamed persons Therefore, order of State Commission cannot be sustained However, petitioner Insurance Company has been deficient in terms of GR 36 so far as it relates to issuance of the package insurance policy with risk coverage of owner-driver without ensuring the availability of an effective driving license with the insured - This has denied the opportunity to the insured of having some other personal policy ensuring him as the owner - The family members of the insured are thus entitled to get some compensation for this deficiency of the Insurance Company - Compensation for death of an unnamed passenger is Rs. 100,000/- in the policy - No reason for awarding less compensation than this amount for death of the insured - Compensation of Rs. 1,00,000/- awarded to complainants for deficiency on the part of petitioner - Petitioner directed to pay Rs. 1,00,000 to complainants along with interest @7% p.a.