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Insurers Repudiate Expired License Claims
Monday, 07 December 2009 12:10
Expired_Drivers_LicenseDriving without a valid driver’s license is, according to your insurer, reasonable grounds to reject you insurance claims. A recent case study by the Ombudsman of Short-term Insurance (OSTI), however, shows that an advanced driving course and the theoretical nature of the renewal test of your driver’s license can overrule your insurer’s decision.

An insured lodged a claim with his insurer for an accident cause by a third party. The claimant was riding his motor-cycle when a vehicle in front of him unexpectedly pulled a u-turn. The claimant’s license to ride a motor cycle however had been expired for the last four months, as a result of, according to the claimant, administrative problems at the licensing department which prevented him from getting an appointment to renew his license.

The license renewal test though, is purely a theoretical test which the claimant had previously passed. This combined with his advanced driving course and experience driving the motor cycle, gave evidence that the accident was not a result of the claimant’s inability to drive. In fact the nature of the collision made it unavoidable for the claimant. As a result the OSTI ruled that the insurer settle the claim in full. 

While an advanced driving course is not a necessity to get your claims processed by your insurer, it says a lot about your ability to drive. That said, it’s advisable to renew your license, as driving with an expired license does give your insurer reason to repudiate your claim.
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