Last Updated:December 08, 2025, 14:12 IST

Even if your driving licence has expired, the law protects accident victims. Learn how insurance claims work and what the 30-day grace period covers

The Punjab and Haryana High Court has clarified that a driving licence remains valid for 30 days after its expiry. If an accident occurs on the 30th and final day of this grace period, the insurance company is legally required to honour the claim.

According to The Tribune, the licence in the case under consideration expired on June 4, 2001. The 30-day grace period began on June 5, meaning the licence remained valid until July 4, 2001. The accident took place on July 4, 2001, at around 10:45 am, and as it fell within the grace period, the licence was deemed legally valid.

Insurance Claims In India: What The Law Says

The rules for insurance claims following a road accident differ depending on whether it is a third-party claim or an own damage claim.

Third-Party Insurance: Mandatory for All Vehicles

Under Section 146 of the Motor Vehicles Act, 1988, third-party insurance is compulsory for every vehicle in India. Third-party claims relate to:

• Injury or death of a third party
• Damage to third-party property

The Supreme Court has consistently ruled that even if the driver has no licence, an expired licence, a suspended licence or a licence of the wrong category, the insurance company must still compensate the victim or their family.

This obligation remains even if:

• The driver has no driving licence at all
• The licence has expired
• The licence is suspended
• The licence belongs to an incorrect vehicle category
• The driver only holds a learner’s licence

‘Pay and Recover’ Principle

The Supreme Court frequently applies the pay and recover principle:

• The insurer must first pay compensation to the victim.
• The insurer may then recover the amount from the vehicle owner.

In 2023, the Supreme Court reaffirmed that the victim must not suffer because the driver lacked a valid licence.

Own Damage Claims: Strict Rules Apply

The rules for own damage claims are entirely different. Every motor insurance policy clearly states that the driver must have:

• A valid driving licence
• A proper licence for the vehicle category

If, at the time of the accident:

• The driver had no licence, or
• The licence had expired, or
• The licence was not appropriate for that vehicle,

the insurance company will reject the own damage claim entirely.

This position was upheld by the Supreme Court in Dharmendra Goyal vs Reliance General Insurance (2022) and reaffirmed in multiple judgements between 2023 and 2025.

The National Consumer Commission (NCDRC) issued similar rulings in dozens of cases.

Grace Period And Licence Validity

If an accident occurs within the 30-day grace period after the licence has expired, insurance policies provide full coverage, both for:

• Third-party claims, and
• Own damage claims

This rule is applicable nationwide.

When Is Renewal Necessary?

According to Section 15 of the Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules, 1989:

30-Day Grace Period

• The licence remains fully valid for 30 days after expiry.
• There is no penalty if renewed within these 30 days.

Penalties After The Grace Period

• After 30 days: Rs 300 fine, increasing to Rs 1,000 per year.
• After 1 year: The applicant must take the driving test again.
• After 5 years: A complete restart is required, including a new learner’s licence.

Renewal Made Easier (2025 Guidelines)

The Ministry of Transport’s 2025 guidelines confirm:

• The 30-day grace period applies across India.
• Driving licences can be renewed instantly online via the Parivahan.gov.in portal.

Click here to add News18 as your preferred news source on Google.

Follow News18 on Google. Join the fun, play games on News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the News18 App to stay updated.

Read More

The Executive Board of the International Monetary Fund (IMF) is scheduled to meet today, with Pakistan expecting approval of approximately $1.2 billion, according to official sources.

The IMF’s board calendar for December 8–14 confirms that Pakistan’s case is on the agenda. The board is set to review the staff-level agreement recently reached with Islamabad.

Under the current loan programme, the board may approve the release of a $1 billion tranche. Additionally, Pakistan could receive the first $200 million installment from the Resilience and Sustainability Facility (RSF), which supports climate-related initiatives.

Final approval will be determined during the board’s deliberations.

Earlier reports indicated that Pakistan had agreed to a key IMF condition requiring a special audit of supplementary grants issued over the past ten years.

Pakistan has also accepted another IMF measure aimed at limiting the federal government’s discretionary authority in issuing supplementary grants.

The 10-day technical discussions between Pakistan and the IMF, which began on November 11, have concluded.

The talks focused on reforms in public finance management (PFM) and measures to improve transparency in the budget process.

According to sources, the digital Public Finance Management Assessment was reviewed, and oversight mechanisms for the digitized PFM master plan were discussed.

Mumbai: Shares of InterGlobe Aviation, the parent company of IndiGo Airlines, fell sharply in early trade on Monday, dropping 6.6 per cent to an intra-day low of Rs 5,015 on the BSE. 

However, it recovered later as around 9:45 a.m., the shares were trading at Rs 5,159.50, down by Rs 211 or 3.93 per cent.

The sell-off came after the Directorate General of Civil Aviation (DGCA) extended the deadline for IndiGo CEO Pieter Elbers to respond to a show-cause notice linked to the airline’s recent operational disruptions.

The aviation regulator had issued a show-cause notice to IndiGo’s accountable manager on Sunday, just a day after sending a similar notice to CEO Pieter Elbers.

The DGCA said that the airline’s massive wave of cancellations over the past week caused widespread inconvenience and distress to passengers across the country.

According to the regulator, the disruptions were largely triggered by IndiGo’s failure to plan properly for the rollout of the revised Flight Duty Time Limitations (FDTL) rules.

These rules, which lay down the duty hours and mandatory rest periods for flight crew, came into effect recently and have created significant operational challenges for the airline.

In its notice, the DGCA pointed out that IndiGo’s “large-scale operation failures” suggest major lapses in planning, oversight and resource management.

The accountable manager has been given 24 hours to explain why enforcement action should not be taken. If the airline fails to respond within the extended deadline, the DGCA has said it will proceed based on the information available.

Even as the regulatory pressure increases, IndiGo said on Sunday that it has restored 95 per cent of its network and plans to operate around 1,500 flights.

The airline claimed that its operations are on track to stabilise by December 10, with improving on-time performance and fewer cancellations.

However, more than 220 flights had already been cancelled across major airports by the time of reporting, adding to the inconvenience faced by thousands of passengers.