Page 54 - Insurance Times September 2023

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Update

Fake licences: Renewal won't make it had been done legitimately, made the licence legally valid,
and hence the claim should be settled.
valid
The District Forum backed Akshay's complaint, directing the
Akshay Deep Singh, the owner of a TATA LPT-909 vehicle,
insurer to settle the claim by paying Rs. 1,85,579 for the
had his vehicle covered under an insurance policy pur- assessed repair costs and Rs. 5,000 as compensation. The
chased from New India Assurance's Kaithal Branch. The insurer challenged this order, but its appeal was subse-
policy was valid from August 23, 2011 and August 22, 2012.
quently dismissed by the Haryana State Commission.
On January 28, 2012, while being driven from Ladwa to Unsatisfied with the decision, the insurer failed a revision
Kurukshetra, the vehicle was involved in an accident. Singh petition challenging the orders of the District Forum and
informed his insurer and subsequently submitted a claim,
the State Commission. In its judgment, the National Com-
comprising Rs. 3,000 for towing charges and Rs. 2,28,319
mission pointed out that there were four RTO offices in
for repairing the damaged car. The insurer then appointed
Hyderabad, but the surveyor had only sought clarification
a surveyor, who evaluated the loss at Rs. 1,85,579. On Sep- from one that the driving licence had not been issued by it.
tember 6, 2012, the insurer repudiated the claim on the It pointed out that Singh should have made an effort to
ground that the driver of the vehicle did not hold a valid verify the authenticity of Ramdhan's driving licence, but he
driving licence.
had not done so.
Aggrieved by the repudiation, Singh filed a complaint with
Moreover, it noted that Akshay did not even take the plea
the Kaithal District Consumer Forum. In its defence, the in- that he had employed Ramdhan under the misconception
surer maintained that the repudiation was warranted since
that he possessed a valid licence. Given that Singh chose
Ramdhan Mewa Singh, the driver possess a valid driving li- not to contest the revision proceedings lodged by the in-
cence. surer, despite having been awarded and paid the cost of
The insurer drew attention to the fact that the licence pro- defence, the Commission felt that it had no option but to
duced was first issued by the Hyderabad Licensing Author- accept the insurer's submission.
ity, and was later renewed by the Kaithal Regional Trans- The National Commission further concluded that even a genu-
port Office (RTO) in Haryana. However, upon verification, ine and valid renewal cannot legitimise an originally counter-
it was discovered that the Hyderabad RTO had not issued feit driving licence. Consequently, by its order dated July 6,
such a licence, thereby proving the document to be a forg- 2023, delivered by Justice Sudip Ahluwalia and Inder Jit Singh,
ery. the National Commission deemed the insurer's repudiation to
Akshay countered that even if the original licence was coun- be justified. It set aside the orders of the District Forum and
terfeit, its subsequent renewal by the Kaithal RTO, which the State Commission and dismissed the complaint. T

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48 September 2023 The Insurance Times