A claim is currently circulating rapidly on social media and the internet, suggesting that every driver receives free accident insurance worth ₹15 lakh upon obtaining a driving license. This has led many to believe that a driving license (DL) functions like an insurance policy—but is this actually the case? Does simply obtaining a license grant you a ₹15 lakh insurance cover? Let’s examine the rules to see how much truth lies in this claim and how one can actually access such insurance benefits.
The Truth About Insurance and Driving Licenses
First and foremost, it is important to clarify that a driving license, in itself, is not an insurance policy. A license issued by the RTO merely serves as proof that you are authorized to drive a vehicle. If you possess only a driving license—without an actual vehicle or an insurance policy—you cannot file an insurance claim in the event of an accident based solely on the license. So, what is this “₹15 lakh rule”?
In reality, this ₹15 lakh coverage is a “Personal Accident Cover” that comes bundled with a vehicle’s third-party motor insurance. According to the regulations set by the Insurance Regulatory and Development Authority of India (IRDAI), when you purchase insurance for any vehicle, a ₹15 lakh personal accident cover for the owner/driver is mandatory. It is crucial to note that possessing a valid driving license is a prerequisite for claiming this insurance. If the driver does not hold a valid license at the time of an accident, the insurance company will reject the ₹15 lakh claim.
When and How Is the Insurance Provided?
Under IRDAI regulations, the ₹15 lakh benefit is applicable under specific conditions, such as:
Who is eligible?: This coverage applies to the registered owner of the vehicle, provided they hold a valid driving license. In the event of death due to an accident: If the vehicle owner/driver dies or becomes disabled in a road accident, a sum of ₹15 lakh is paid to the nominee.
Furthermore, a 100% claim is provided for the loss of both eyes, both hands, or both legs; a 100% claim is also provided for the loss of one eye and one limb; a 50% claim is provided for the loss of one eye or one limb; and a 100% claim is provided in the event of total disability.
Conditions for claiming:
To receive the insurance claim of ₹15 lakh, certain conditions must be met, such as:
Driving License: The driver must possess a valid and original driving license (DL) at the time of the accident.
Vehicle Insurance: The motor insurance for the vehicle involved in the road accident must be active.
Avoid Intoxication: If the driver was operating the vehicle under the influence of alcohol or any other intoxicating substance, the claim will be rejected.
Traffic Rules: The vehicle must not be overloaded, and seatbelts or helmets must be used. Failure to comply may result in the rejection of the claim.
How to file a claim?
If you ever need to file a claim, keep the following points in mind:
File an FIR: Immediately after the accident, file an FIR at the nearest police station.
Inform the Company: Promptly notify the relevant insurance company.
Submit Documents: Provide the necessary documents, including a copy of the FIR, a valid driving license, the vehicle’s Registration Certificate (RC), the insurance policy document, hospital summary or death certificate, and the post-mortem report.
Important Note:
Do not be misled by information circulating on social media. Simply obtaining a driving license does not automatically provide any form of insurance coverage. When you purchase vehicle insurance, a valid driving license is required to claim the ₹15 lakh personal accident cover included in the policy. Therefore, always keep your vehicle insurance renewed and focus on driving safely while ensuring you hold a valid license.
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