Automobile insurance companies require drivers they insure have a valid drivers’ license and will not pay...

Automobile insurance companies require drivers they insure have a valid drivers’ license and will not pay 100% of damage claims. Explain why.

Expert Solution

As per guidelines of Insurance regulatory authority of nation, It is mandatory for driver to have a valid driving license with him / her while driving the car. If the driver does not have license then not only his insurance claim will be rejected but also he / she can be penalized for driving the car without license. Further, driving the car without license is not legally valid as per Motor vehicles act. Accordingly, considering the provisions of various laws, Driver must have his valid driving license before driving the car. This is the first primary condition for automobile insurance companies to check before they proceed with sanctioning of claim amount. Further, 100 % of damage claimed by person (insured) will never be paid by insurance companies because depending on the car value, insurance terms and conditions, other various parameters to consider while making claim payment.

Rahul Sunny answered 2 years ago

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