Many employers hire drivers for their business needs, but very few of them actually check to see if their license is genuine or not. Trust is a good thing, but can backfire when filing an insurance claim. Assume that your company’s vehicle has met with an accident and you file a claim seeking compensation for the damages, only to hear back that your claim is rejected.
This can happen easily, and has happened recently, wherein the owner of the vehicle filed for a claim and it was repudiated with ‘fake license’ being the reason stated by the insurer. In such a scenario, even though the insured is paying his premium on time and his policy is active, yet his claim is not valid and he has to bear the loss. This can happen with you also if you do not perform the due diligence needed before hiring a driver.
In a recent incident, a transport company’s truck met with an accident while carrying goods. The insured truck sustained damages and was repaired. However, after assessing the loss, the insurance company denied the claim. The owner of the truck filed a case against the insurer and after a lengthy court battle, lost the case. The bench ruled that the damage could not be compensated, as the driver’s license was fake. The court also observed that even if the fake license is renewed, it would still be invalid and hence any claim in that regard will be rejected as well.
(Source: Times of India)
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