No safeguard if licence conditions breached

No safeguard if licence conditions breached

Karen Stevens

Karen Stevens

The Insurance & Financial Services Ombudsman has issued a reminder that insurance cover becomes invalid if licence conditions are breached, as well as having legal consequences.

For dealers that can apply to both staff and those test driving vehicles.

Insurance cover is another benefit to encourage learner drivers to get licensed, says IFSO’s Karen Stevens.

Declined insurance claims due to breach of licence are a common complaint to the IFSO Scheme. Breaches include driving with passengers on a learner or restricted driver’s licence or driving between 10pm and 5am on a restricted driver’s licence, without a supervisor.

“If the insured can prove that the breach of the licence, most commonly the absence of a supervisor with a restricted driver, did not cause or even contribute to the accident, then the insurer cannot decline the claim on the basis of this exclusion. However, it can be very difficult to prove that a supervisor would not have assisted the driver to avoid the accident.”

The community driver mentor programme, run by the NZ Transport Agency and the Automobile Association with support from the Salvation Army, helps young learner drivers to get their restricted driver’s licence and provides access to vehicles and driving coaches.

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