Jharkhand High Court Upholds Insurer Liability in Driver’s Negligence Case, Orders Compensation Payout
Last Updated on January 8, 2024 by News Desk
The Jharkhand High Court has ruled that an insurance agency is liable to pay compensation for a motor vehicle accident claim for a hired driver’s death, even if the accident is caused by the driver’s negligence. This liability arises once the insurer has accepted an additional premium to cover the indemnity of the vehicle owner.
The ruling came in a miscellaneous appeal on behalf of Bajaj Allianz, which arose from an award passed by MACT Gumla. The claimants were awarded Rs. 6,08,540/- along with interest. The plaintiff’s spouse was involved in a fatal road accident involving a vehicle covered by the respondent’s insurance.
The District Judge awarded the claimants Rs. 6,08,540, along with a supplementary 6% annual interest computed from the initiation of the claim petition on September 20, 2014. The petitioner is currently challenging this judgement through the ongoing appeal process.
The court noted that the appellant’s computerised insurance policy was a comprehensive private car package policy, with additional premiums paid for one employee.
The court held that the insurance company or appellant is liable to satisfy the award amount with interest and then recover the same from the owner or insured. The appeal was dismissed.
By Srijan raj @procrastinate_human
