Driving License: Big decision of High Court, driving license will be valid for 30 days after expiry

Driving License: Giving an important decision, the Punjab and Haryana High Court has rejected the appeal of the National Insurance Company, in which the company had argued that the driver did not have a valid driving license at the time of the accident. The company said that the license period had expired before the accident, hence the responsibility of paying the compensation amount could not be put on it.

Rejecting this argument, a single bench of Justice Virendra Aggarwal clearly said that the Motor Vehicles Act has a provision for a grace period of 30 days after the expiry of the driving license. During this period the license is considered effective and valid. According to the Court, the same legal provision applies in this case and hence the Tribunal’s decision was correct.

The case pertained to the order of the year 2003, which was passed by the Motor Accident Claims Tribunal, Jind. The only basis of the insurance company’s appeal in the High Court was that the driver’s license had expired on 04 June 2001, while the accident had occurred on 04 July 2001. The license was renewed on 06 August 2001, which the company said was in violation of the policy conditions.

But the High Court, while interpreting Section 14, said that the license is considered valid for a period of 30 days from the day following the expiry of the license. According to this calculation, the 30th day of the period starting from 05 June 2001 falls on 04 July 2001—the same day when the accident occurred at 10:45 am. On this basis the court held that the driver’s license was legally valid at the time of the accident.

The High Court also said in its decision that it has been confirmed in many judicial decisions that if the accident occurs within the grace period of 30 days, then the driver cannot be considered without a license. Therefore, the contention of the insurance company that the license had expired is not in accordance with the law.

The court upheld the tribunal’s order passed on 04 January 2003 and rejected the appeal of the insurance company. The Court also made it clear that insurance companies cannot escape their responsibility merely by citing formal termination of license, as the law has provided clear and specific protection for such circumstances.