The content discusses a case where an insurance company refused to pay out the insurance amount to the beneficiary of an owner-cum-driver policy following the insured person died in a car accident. Despite having taken out an insurance policy, the company refused to pay out on the basis that the deceased did not have a driving license. In response, the deceased’s wife filed a petition once morest Future General Insurance Company with the Pre-District Consumer Commission. The commission ruled that denying insurance coverage on the grounds of lack of license (following acceptance of Motor Insurance Act) was improper and ordered the company to pay Rs.2 lakh to the complainant. The commission also stated that while a driving license is not necessary to own a vehicle, it is not mandatory for insurance coverage of the vehicle owner.
Although an insurance policy has been taken out to cover the vehicle owner, the company is unwilling to pay the insurance amount.
PreDistrict Consumer Commission’s ruling that insurance cannot be denied on grounds of lack of license following acceptance of MIA. Eliamma, a resident of Nilambur Amarambalam, filed a petition once morest Future General Insurance Company.
Eliamma’s husband Kurian died in an accident in Chokkad Kallamula in December 2015. The car he owned was involved in the accident. The grandson was driving. Although an insurance policy has been taken out to cover the vehicle owner, the company is unwilling to pay the insurance amount. The company denied the amount on the grounds that the vehicle owner did not have a license.
Then his wife Eliamma approached the Consumer Commission. The commission ordered that the owner-cum-driver policy is intended to protect the vehicle owner and his family, denying the insurance following receiving the premium was improper and the amount should be paid to the complainant.
The commission said in its order that while a driving license is not mandatory to own a vehicle, there is no basis for requiring a license for the insurance coverage of the vehicle owner.
K. asked the complainant to pay Rs.2 lakh with nine percent interest from the date of petition, Rs.25,000 for default of service and Rs.10,000 as court costs. Mohandas President and Preeti Sivaraman, C.V. Muhammad Ismail said in the order of District Consumer Commission.
In a landmark ruling, the Pre-District Consumer Commission has ordered Future General Insurance Company to pay out an insurance claim, even though the vehicle owner did not have a driving license. Eliamma, the petitioner, had filed a complaint following her husband’s death led to the insurance company refusing to pay out. The commission stated that driving license not being mandatory to own a vehicle was the basis for the verdict. It is a significant ruling that may affect future insurance claims and set a precedent. Regardless of the ruling, it is always important to have a valid driving license before getting behind the wheel.
