High Court Orders: If you are a driving license holder, this news could be very important for you. The Punjab and Haryana High Court has delivered a significant judgment in a crucial case related to driving licenses. The court clarified that the validity of a license does not immediately expire with its expiry date. Under the Motor Vehicles Act, a statutory grace period of 30 days is granted after expiry, during which the license is considered valid. In the event of an accident during this period, the insurance company cannot refuse compensation simply by citing the expired license.
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What is the case?
This case is related to a road accident that occurred on July 4, 2001, in the Jind district of Haryana. The victims of the accident had sought compensation from the Motor Accident Claims Tribunal. The Tribunal ruled in favor of the victims, ordering the insurance company to pay compensation, and also denied permission to recover the amount from the driver.
Insurance company’s objection
The insurance company challenged the Tribunal’s decision in the High Court. The company argued that the driver responsible for the accident had an expired driving license as of June 4, 2001. The accident occurred on July 4, 2001, while the license was renewed later on August 6, 2001. According to the company, the driver was driving without a valid license at the time of the accident, therefore, it was not liable for compensation.
High Court interprets the law
The High Court, citing Section 14 of the Motor Vehicles Act, 1988, stated that a 30-day grace period is legally granted after the expiry of a license. The court clarified that in this case, the grace period started from June 5, 2001, and was valid until midnight of July 4, 2001. Since the accident occurred on July 4 at approximately 10:45 AM, it falls entirely within the grace period. Based on this, the court held that the driver’s license was valid at the time of the accident.
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Why was the insurance company denied relief?
The court stated that the purpose of the grace period is solely to protect drivers and victims from losses due to technical reasons. Since the law itself considers the license valid during this period, the insurance company cannot claim a violation of policy terms. For this reason, the High Court dismissed the insurance company’s appeal and upheld the responsibility to pay compensation.
Significance of the judgment for the general public
This judgment will serve as a precedent in Punjab and Haryana and may have an impact in other states as well. If a license has not expired for more than 30 days at the time of an accident, insurance companies will not be able to reject claims solely based on the expiry date. However, the court also clarified that this judgment does not validate licenses that have expired for a long time, and timely renewal remains necessary.