The Punjab & Haryana High Court has upheld a 2003 Motor Accident Claims Tribunal (MACT), Jind award, rejecting the insurance company’s contention that the driver of the offending vehicle was not “duly licensed” on the date of the accident due to licence expiry.
In National Insurance Company Ltd. v. Satbir & Others, Justice Varinder Aggarwal observed that the Motor Vehicles Act, 1988 expressly provides a 30-day statutory grace period after the expiry of a driving licence. During this time, the licence continues to remain legally valid.
Accident Within Valid Grace Period
The insurer argued that the driver’s licence expired on 04.06.2001, whereas the accident took place on 04.07.2001, and renewal was obtained only on 06.08.2001. Based on this, it sought recovery rights against the vehicle owner after the Tribunal fastened liability on the insurer.
Rejecting this stance, the Court held:
“Once the statutory grace period is applied, the position becomes entirely clear that the licence… was subsisting on the date and time of the accident. The expiry of the licence… read with the thirty-day extension provided under law, leaves no room for doubt.”
The Court noted that:
• Licence expired: 04.06.2001
• Grace period commenced: 05.06.2001
• 30th day: 04.07.2001
• Accident time: 04.07.2001 at 10:45 AM
Thus, the licence was legally effective at the time of the accident, and no breach of policy conditions occurred.
Legal Basis & Precedents
Relying on the proviso to Section 14 of the Motor Vehicles Act, 1988, the Court reaffirmed that the law grants effectiveness to a driving licence even after expiry for 30 days.
The judgment also drew support from:
• State of Haryana & Anr. v. Karkor & Ors. (FAO No. 2975 of 2005 – 24.05.2018)
• Oriental Insurance Co. Ltd. v. Santosh Kumari, 2018 (4) ADJ 527 (Allahabad HC)
Both precedents establish that insurers cannot seek recovery rights during the statutory grace period.
Counsel Representation
• Mr. Harjinder Singh, Advocate — Appellant
• Mr. M.K. Sood, Advocate — Respondent No. 4 (Insurer)
