#driving licence validity

The Punjab & Haryana High Court nearly doubled compensation for a 23-year-old engineer's death to ₹22.27 lakh, applying the Pranay Sethi formula with a 40% future-prospects addition and an 18-year multiplier. It also barred the insurer's recovery claim, ruling that an out-of-state driving licence cannot be presumed invalid without proof of policy breach.

The West Bengal State Consumer Commission ruled that an insurer cannot repudiate a claim merely for a policy breach (invalid driving licence) unless it directly caused the loss. The Commission awarded 75% of the insured declared value with 7% interest, setting a precedent for non-standard settlements where breach and loss lack proximate causation.

Delhi State Consumer Disputes Redressal Commission holds that repudiating an insurance claim solely on grounds of an invalid driving licence constitutes deficiency in service under the Consumer Protection Act. The ruling underscores that insurers cannot evade liability without proving wilful misconduct or commercial use exception, awarding full claim value with interest and costs to the complainant.

The Punjab & Haryana High Court ruled that an insurer’s right to recover compensation under Section 149 of the Motor Vehicles Act hinges on whether the driver held a valid Indian licence at the time of the accident - not merely a foreign one. This sets a critical precedent for insurers and claimants in cases involving foreign-licensed drivers, requiring tribunals to verify licence authenticity before granting recovery rights.