No Motor Claim payable if law is violated

If you are to enjoy your rights as a consumer, you need to abide by the laws of the land. Or else, you lose your right as a consumer — this is the clear message that comes across in a recent order of the apex consumer court.

The case pertains to an insurance claim for the loss of a motorcycle filed by a consumer. The claim was repudiated by the insurance company on the ground that the vehicle was driven without a valid driving license. Besides, the vehicle was not even registered as required under Section 39 of the Motor Vehicles Act.

In his complaint before the consumer court, the consumer argued that the absence of a license was not a valid ground for repudiation as the vehicle was snatched away while it was parked and not while being driven. As far as the registration was concerned, there was a delay because he wanted a number of his choice.

The insurance company, on the other hand, argued that the consumer had neither deposited the fee nor produced the vehicle for inspection by the transport department for registration. And by driving the vehicle without registration, he had violated the Motor Vehicles Act and also the terms of the insurance policy.

The apex consumer court here referred to Section 39 of the Motor Vehicles Act and said it was very clear from a reading of this section that till a vehicle receives the certification of registration from the competent authority, one cannot drive them on roads.

The complainant had violated that section. From his own statements in his petition, it was clear that he used the vehicle to drop his uncle to the railway station and the incident happened during his return journey. This use of the motorcycle was in clear violation of the statutory requirement of registration, the commission pointed out.

Observed the commission: “We find ourselves in complete agreement with the state consumer disputes redressal commission that use of the vehicle in violation of the law itself will take it beyond the protection of the policy”. The insurer was therefore justified in rejecting the claim, the commission held. (Kaushalendra Kumar Mishra vs the Oriental Insurance Company, RP No. 4043 of 2008, decided on 16.2.2012)

So when it comes to vehicle insurance policy, always remember that any violation of the Motor Vehicles Act could well take away your right to claim your insurance amount from the insurance company.