Joey, the third-party claimant, was involved in an accident with the insured driver, Amy, where she was found to be at fault. Joey subsequently submitted a claim for loss of use of the vehicle, also known as Compensation for Assessed Repair Time (CART).<\/p>\n\n\n\n
However, the insurer rejected the claim because Amy did not have a valid driving licence at the time of the accident. The insurer stated that this breach of policy conditions by their insured driver entitled them to deny liability to the third-party claimant or any other claims arising from the accident.<\/p>\n\n\n\n
FINDINGS<\/strong><\/p>\n\n\n\n The insurer submitted the police summons as evidence that Amy did not possess a valid driving licence at the time of the accident.<\/p>\n\n\n\n The insurer has referred to the following provision:<\/p>\n\n\n\n Section D: General Exceptions<\/em><\/p>\n\n\n\n Unlicensed Drivers Section 26 of the Road Transport Act 1987 (RTA) sets out the regulations relating to driving licences as follows:<\/p>\n\n\n\n \u201c(1)Except as otherwise provided in this Act, no person shall drive a motor vehicle of any class or description, on a road unless he is the holder of a driving license authorizing him to drive a motor vehicle of that class or description, and no person shall employ or permit another person to drive a motor vehicle on the road unless the person so employed or permitted to drive is the holder of such a driving license.<\/em><\/p>\n\n\n\n (2)Any person who contravenes subsection (1) shall be guilty of an offence and shall on conviction be liable to a fine of not less than three hundred ringgit and not more than two thousand ringgit or to imprisonment for a term not exceeding three months or to both.\u201d<\/em><\/p>\n\n\n\n OUTCOME<\/strong><\/p>\n\n\n\n The Ombudsman adjudicated the case in favour of the insurer. The insured driver was found to be driving without a valid licence, which constitutes a breach of the policy conditions. As a result, the insurer is entitled to deny the third-party claim.<\/p>\n\n\n\n Nevertheless, Joey still has a direct legal avenue and may pursue compensation by filing a personal action against Amy.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Joey, the third-party claimant, was involved in an accident with the insured driver, Amy, where she was found to be at fault. Joey subsequently submitted a claim for loss of use of the vehicle, also known as Compensation for Assessed Repair Time (CART). However, the insurer rejected the claim because Amy did not have a […]<\/p>\n","protected":false},"author":4,"featured_media":10002,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25,27],"tags":[],"class_list":["post-10000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-studies","category-insurance-takaful"],"acf":[],"yoast_head":"\n
There is no cover under this Policy<\/strong> if You or Your Authorised Driver do not have a valid driving licence to drive Your Car<\/strong>. This will not apply if You or Your Authorised Driver have an expired licence but are not disqualified from holding or obtaining such driving licence under any existing laws, by-laws and regulations.\u201d<\/em><\/p>\n\n\n\n