Renew driving licence in time

Pushpa Girimaji

IF you are hiring a driver, ensure that he has a valid driving licence. Also, keep a track of when that licence will come up for renewal, and ensure that it is renewed without any delay. Failure to do so may well land you, the owner of the vehicle, in trouble. Because by allowing your vehicle to be driven by someone who does not have a valid licence, you are not only violating your motor vehicle insurance policy condition, but also the provisions of the Motor Vehicles Act, 1988.

In case your vehicle meets with an accident, even courts will not be able to help you. Take the case of New India Assurance Company vs Suresh Chandra Aggarwal. Aggarwal’s driver failed to renew his licence in time and it expired on October 25, 1991. Obviously unaware of it, Aggarwal allowed him to drive his car, and on February 29, 1992, his car met with an accident, resulting in the tragic death of his driver. The car was also extensively damaged and required to be written off.

The insurance company, however, repudiated his claim, saying that there was violation of the terms of the policy as the driver of the vehicle at the time of the accident did not have a valid licence. The car owner’s contention on the other hand was that the special condition No 5 of the policy stipulated that the insured vehicle could be driven by the insured or any other person permitted to do so by the insured, provided that the person "holds or had held and has not been disqualified" from holding an effective driving licence with all the required endorsements.

Since the driver had held a valid licence till October 25, 1991, and had not been disqualified (his licence had been renewed for three years from March 23, 1992), the insurer cannot deny the claim. While the courts agreed with this view and directed the insurance company to pay, the Supreme Court disagreed and said the driver did not at all hold an effective driving licence as required under the policy.

It pointed to Section 3(1) of the Motor Vehicles Act that stipulates that no person shall drive a motor vehicle in any public place unless he holds an effective driving licence; and Section 5 which says that no owner or person in charge of a motor vehicle shall cause or permit any person who does not satisfy the provisions of Section 3 of the Act, to drive the vehicle.

The apex court also referred to Section 15 of the Act, which makes it clear that if an application for the renewal of a licence is made within 30 days after the expiry of the licence, it would be renewed from the date of expiry. However, if the application is made after 30 days, then the renewal would be effective only from the date of the renewal. Said the Supreme Court: "As a matter of fact, in view of the clear mandate of Section 3 of the Act, the deceased driver was not even permitted to drive the insured vehicle in a public place.

Furthermore, the claimant not only committed a breach of the terms of the policy, he also violated the provisions of Section 5 of the Act by entrusting the vehicle to a person who did not hold a valid licence on the date of the accident.

"We fail to understand as to how the licence was and could be renewed with effect from March 23, 1992, after the death of the licence holder on February 29, 1992. In our opinion, therefore, the appellant was not liable to indemnify the claimant for the loss suffered by him in the accident of the insured vehicle." (Civil Appeal No 44 of 2003, decided on July 10,2009).

So, whether its your own driving licence or your driver’s, always make sure that it is renewed in time, as any delay could turn out to be really costly. Keep a note of when the licence is coming up for renewal, and ensure that it is done without any delay. In case of your driver, you also need to make sure that his driving licence is genuine and not fake.

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