NEW INDIA ASSURANCE COMPANY LIMITED vs DIPAKSINH BALDEVsINH VIHOL

THIS is a case in which the Insurance Company declined to pay the claim on account of a car accident on the ground that the driver did not have an effective licence on the date of accident which was 4.2.1992. The driver''s licence expired on 24.8.1991; which means that on the date of accident, he did not have a valid licence. It is not the case of the complainant that the application for renewal was made within one month of the licence. But the licence was renewed on 11.2.1992 which means after about six months of the date of expiry of the licence. In view of the first proviso to Section 15(1) of the Motor Vehicles Act, the renewal will be valid only from the date of renewal and not from the date of expiry of the licence. The driver not having a valid licence was allowed to drive. THIS has not been explained satisfactorily. In that view of the matter, the order of the State Commission which held that the driver had an effective licence on the date of accident has to be set aside. The appeal is allowed. The impugned order of the State Commission is set aside. No order as to costs. Appeal allowed.