Yes. An insurance claim can be rejected if the driver’s licence had expired at the time of the accident, especially when the insurer can establish a breach of the policy condition.
However, rejection is not automatic in every case. The circumstances matter. The Supreme Court has held that where the licence remained expired for a substantial period and the vehicle owner failed to take reasonable care to ensure renewal, the insurer may be relieved of the ultimate liability. In some third-party cases, the insurer may first pay the compensation and then recover it from the owner/driver.
Also, if the accident occurred within the legally applicable renewal period after expiry, the position can be different.
In short: An expired driving licence can be a valid reason for an insurer to reject or deny a motor insurance claim, but the exact outcome depends on the type of claim, how long the licence was expired, and the policy and circumstances of the accident.
