‘Motor Insurance – When the Insurers Don’t Pay?’ | 21. Driver’s Clause

The phrase ‘Driver’s Clause’ in the Motor Policy wording is found in general exceptions which are applicable to all sections of the policy. General exceptions deal with those instances where the insurance company will not pay. It reads as follows:

‘The company shall not be liable under this policy in respect of any accidental, loss, damage and / or liability caused, sustained or incurred whilst the vehicle injured herein is being driven by or is for the purpose of being driven by him / her in the charge of any person other than a driver as stated in the driver’s clause’.

Let me swear in the name of God…this Driver’s Clause has been driving me crazy. Anyone would become crazy if they do not find the Driver’s Clause in the policy wording. People subscribe for Motor Insurance policy because of its compulsory nature. I accuse the insurance company and the regulator conniving in looting the people in the name of Motor Insurance because it is compulsory.

I searched Motor Policy wording of all Insurers in India. Besides the difficulty every Insurer’s Motor Policy wording is different, no insurer has defined the Driver’s Clause. The wording states if it is driven by any other person other than the driver as stated in the Driver’s Clause…so what is the Driver’s Clause? I read everything written in the policy wording including the most useless and majority non-applicable IMT series. In every policy issued majority of IMT clause series are not applicable. The insurers appear to love their customers so much that they are providing all IMT series which were drafted a quarter century ago! No Driver’s Clause other than a driver as stated in the Driver’s Clause...what then, is this enigma of Driver’s Clause? Where do we find it? ???

Having read the entire Motor Policy wording and gone half mad, I came to the Schedule of Motor Insurance policy. To put it in simple words, Policy Schedule is that where the policyholder’s name, address, premium charged, details of the vehicle being insured are is stated. That is called Policy Schedule. In the Policy Schedule finally, I found this phrase:

“Any person including the insured, provided that a person driving holds an effective driving license at the time of the accident and is not disqualified from holding or obtaining such a license. Provided also that the person holding an effective learner's license may also drive the vehicle and that such a person satisfies the requirements of Rule 3 of the Central Motor Vehicles Rules, 1989”.

No company but one has called the above as Driver’s Clause. That only unfortunate company to have called it as Driver’s Clause is ICICI Lombard General Insurance company. Eureka. Thank you, God. On this Saturday, for this great discovery, I shall break 2 coconuts / read a special prayer in the mosque / will conduct a special mass in the church…nah! I will do all!!!

The Driver’s Clause as seen above defines who is a driver. Any person who has an effective driver’s license but also if the driver is having an effective learner’s license, is a driver. So generous are these insurance companies! I wish to ask the Regulator and the Government, the Insurers and the public at large, if you were to fall sick and undergo a surgery, will you go to a trainee surgeon or a qualified surgeon? Please answer. Learners driving license is as stupid as going to a trainee surgeon for surgery.

Easiest thing the insurers or the regulator could have done is:

a)?????To write in the policy wording that the Driver’s Clause is defined in the Policy Schedule.

b)????Or to simply define Driver’s Clause in the policy wording itself. The observation that it would occupy too much of space can be ignored because of liberal IMT versions provided in policy. ?

c)?????For God’s sake (I said God’s sake because I cannot say for the policyholder’s sake, because you don’t care for them) use the same nomenclature - either call it as Driver’s Clause or as Persons or class of persons entitled to drive.

As a policyholder I cannot threaten my insurer that I will go to another insurance company. So, keeping aside the policyholder’s ego and self-respect, I beg you all not to confuse us, the innocent policy holders. If it is needed, we the policyholders are ready to fall at your feet and worship you sirs. Can you hear our prayers?