Insurance is like a spare tyre. You may not require it, but not having one is not an option.
  • A Tourism Company Has Been Denied Car Insurance Because of Fake Driving License

    Case Summary

    A plea from a tourism company has been rejected by a consumer forum on the basis of furnishing a fake driving license. The company was looking for directions from the forum regarding payment of car insurance from an insurer for one of its cars that had been damaged in an accident in 2010. Mr. M C Mehra from the South Delhi Consumer Disputes Redressal Forum had passed the required order on the plea that was filed by the tourism agency. The car insurance amount that was to be paid was Rs 90,017, based on the sum the car was insured for.

    Key Findings

    The forum found that the driving license held by the driver was not genuine and had no records. This was determined as a violation of the terms and conditions of the car insurance policy. The forum also discovered that there was no drinking license issued by the authority office, in the name of Narayan Haldar, the person driving the car at the time of the accident. The damaged car was insured with insurer from June 30, 2010 to June 29, 2011 and at a depreciated value of Rs 4, 19,574.

    Core Problem

    The insured vehicle had an accident on November 24, 2010, as per the tourism firm.

    After the accident, the tourism firm filed for insurance claims, which was not given for the insurance company.

    Solution/ Alternative Course of Action

    As per the plea, tourism firm had asked for a compensation of Rs. 80,000 along with the cost of litigation which came up to Rs. 20,000. The consumer forum rejected the plea saying that driving license of the person driving the car at the time when the accident happened was fake and so the insurance amount was not paid.

    GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

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