Bunty Goel, a resident of Chandigarh, had said that he got his Mahindra Pick-up insured with the National Insurance Company after paying the requisite premium. He had hired a driver who had a valid and effective driving license.

The vehicle unfortunately met with an accident and was badly damaged soon after. The inspection officer appointed by the company told Goel to get the vehicle repaired and submit the bills for passing the claim. However, the company refused to clear the bills later saying that the driver did not have a valid driving license at the time of accident.

The company also said that the driver had a license for driving a Light Motor Vehicle (LMV), but there was no endorsement for driving a transport vehicle. Thus, the insurance claim was not payable, the company said.

The forum refuted this observation made by the insurance company and said that the vehicle is an LMV, and directed the company to pay the fine and other litigation charges to the complainant.