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Recently the supreme court has held that only in the event an application for renewal of licence is  filed within a period 30 days from the date of expiry thereof, the same would be renewed automatically which means that even if an accident  had taken place within the aforementioned period, the driver may be held to be possessing a valid licence. The proviso appended to Sub-section (1) of Section 15, however, clearly states that the driving licence shall be renewed with effect from the date of its renewal in the event the application    for renewal of a licence is made more than 30 days after the date of its expiry. It is, therefore, evident  that as, on renewal of the licence on such terms,  the driver of the vehicle cannot be said to be  holding a valid licence, the insurer would not be     liable to indemnify the insured." - Ram Babu Tiwari v. United India Insurance Co. Ltd. & Ors. (2008) 8 SCC 165.

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