Punjab commission rejects United India Insurance appeal over car claim denied on old licence

The Punjab State Consumer Disputes Redressal Commission on 21 October 2026 dismissed an appeal by United India Insurance Company and upheld an order to pay an own-damage claim on a car. The insurer had rejected the claim because, it said, the driver's original licence from the 1980s was recorded in another person's name.

What Happened

According to the order, the car, owned by New India Assurance Company and insured with United India Insurance from 20 November 2019 to 19 November 2020, hit an electric pole on 8 February 2020. The insurer's surveyor assessed the loss at Rs 3,74,969, and the car was repaired at an authorised dealer for Rs 3,64,593. United India Insurance rejected the claim on 6 October 2020, citing a transport office report that the driver's old basic licence belonged to someone else.

The commission noted that the driver's licence had been issued in 1991-92 and renewed several times by the licensing authorities, and was valid up to 1 March 2023 for non-transport vehicles. The insurer produced only an extract from the Regional Transport Authority, Hoshiarpur, and examined no transport official and filed no affidavit to show the licence was fake. Relying on rulings of the National Consumer Disputes Redressal Commission, it held that a claim cannot be refused only because a licence was first based on a doubtful one when the renewals were genuine and the insured had no knowledge of any defect.

The commission upheld the Hoshiarpur District Commission's order of 12 April 2024, which directed the insurer to settle and pay the claim as own damage with 6% annual interest from the date of the repair payments, plus Rs 25,000 as costs and compensation, within 45 days, with an extra 3% interest if it fails to pay. The Rs 12,500 the insurer deposited with its appeal will go to the car's owner.

What It Means

The order says an insurer that rejects a motor claim over a fake licence must prove it, and cannot rely only on a doubt about an old record when the licence was genuinely renewed. Vehicle owners whose claims are refused on such grounds can contest them. The order may be appealed. Complaints can be filed through e-Daakhil or the National Consumer Helpline on 1915.

Source: Consumer commission order