Page 371 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

licence and met with serious accident, resulting
into damage to car and serious injuries to a
pedestrian. The insured is having Private Car
Package Policy 'for the Car. Discuss the Insurer's
Liability.
Ans. Motor insurance policy provides named perils under
Section -I and specific exclusions to the cover. The
policy in its exclusion clearly state that the policy will
not cover the risk if the vehicle is driven by a person
who holds a valid is driving license at the time of accident.

As per the provisions of Motor Vehicle Act also no
person is authorize to drive a motor vehicle at a public
place unless he is authorized to drive such vehicle with
a license in force. Package policy covers the Own
damage risk of the vehicle and any loss or damage
caused to the vehicle on road is payable if the vehicle is
driven by the person who is duly licensed.

For admission of liability under the policy, the watchman
driving the car at the time of accident must hold a
valid driving licence entitling him to drive LMV. In the
instant case the watchman who drove the car at the
time of accident was without a valid driving licence.
Hence the insurers are liable neither for damage to
car nor for personal injuries to the pedestrian.

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