A purchased a car getting it financed by XYZ Finance Limited. The car was being used for a company's executives only. The car met with an accident. A filed a claim with the insurance company ABC General Insurance Limited

No, the insurance company was not right in deducting the amount of ₹ 36,400.00 from the claim amount on the ground that the driver did not have an endorsement on his licence to drive that vehicle. Once a person had a proper licence to drive a four-wheeler, it would mean that he was entitled to drive any car for any owner. Due to this entitlement with the driving licence the driver was allowed to drive the car which met with the accident. The insurance company in such a case was liable to pay the full amount of claim and was not justified in deducting any amount on whatsoever reason. A, the aggrieved insured person should file a complaint at the appropriate forum, so that the insurance company pays the balance amount along with interest at 12 percent and cost of ₹ 10,000/-. The insured can challenge the deduction, citing relevant judicial precedents and principles of proportionality. Courts or consumer forums are likely to consider whether the breach materially affected the insurer's risk before ruling on the matter.