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If the certificate of insurance is not valid at the time and date of accident, there is no question of claim under the policy, as the risk would have operated beyond the period of insurance. Just imagine the fate of the owner of a vehicle in case he does not have a valid policy and fatally injures a pedestrian by accident. The entire liability that would arise out of the third party claim would have to be borne by him. And that would mean a lot of money.
The certificate of registration not only proves ownership of the vehicle but also gives it an identification number. If the vehicle is not registered in a person's name, he cannot be rightfully the owner of the same. He is therefore not entitled to claim any insurance money arising on account of accident to the vehicle. When a vehicle is sold, the buyer should necessarily get the ownership transferred in his name by means of a transfer endorsement in the RC book. An intimation should be given to the insurance company also to endorse the insurance policy accordingly.
The driving license is a very important document. The insurance companies by means of a warranty in the policy specifically mention that the company shall not be liable to pay any loss or damage arising out of an accident, if at the material time the driver was not holding a valid and effective driving license.
Valid means that the driver should possess the license entitling him to drive that particular type of vehicle. A person holding a driving license to drive a car is not entitled to drive a motor cycle.
Effective means that the license should be in force. If any of these conditions are not satisfied the driving license is treated to be invalid and claims if made are rejected by the insurance companies. A learner's license is said to be valid and effective, if an "L" board, according to specifications of the Act, is installed in the front and rear of the vehicle, and a person holding a valid and effective driving license of the vehicle being driven, is seated beside the holder of the learner's license.
The permit is a document issued to commercial vehicles authorising its use and route. Normally we find the words 'National Permit' written on the hood of trucks or buses. These vehicles are permitted to be used anywhere in India. If a truck meets with an accident in Gujarat whereas it possesses a permit to be used in Maharashtra only, the insurance company rejects the claim or makes a suitable deduction from the claim amount, for the breach.
The fitness certificate is also issued to commercial vehicles as a proof of its roadworthiness for its particular use. If a vehicle does not have such a certificate and meets with an accident, the insurance companies may reject the claim if the insured cannot prove that the vehicle was roadworthy otherwise and the accident had nothing to do with its roadworthiness. If the vehicle had a fitness certificate and it had expired, insurance companies admit the claim but make a suitable deduction from the amount as penalty for the breach.
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