While I can't verify the facts of the scenario described I do believe insurance companies are in the business of making money and minimising payouts is key means of maximising profits
If you are required to hold both a valid drivers licence and an IDP by the government of the country where the motorcycle is being ridden and you don't have a current IDP and have an accident I suspect your insurance company will most likely refuse a claim if this can in any way be interpreted as an exclusion of cover as stated in the PDS for the policy
I raised this issue not to spread "urban myths" but as a legitimate possibility that should be given consideration
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