In a historic verdict announced by the country’s top-tier judiciary institution – Supreme Court, going forward an insurance company is not liable to pay any compensation to the kin’s family, if the driver passes away due to own negligence and rash driving. The Supreme Court opined in an official directive released on July 2, stating no monetary payment must be made due to their own mistake during daredevil stunts or on account of rash and reckless driving, in an extreme message to speed addicts and those who seek to hog eyeballs by performing stunts.
This stringent directive came in the aftermath of the apex body led by a bench of Justices P.S. Narasimha and R. Mahadevan refused to grant INR 80 lakh compensation sought by the wife, son and parents of a man who died while driving a car at high speed, which ended with the vehicle toppling over.
Dismissing the claim petition of the deceased’s kin, who demanded INR 80 lakh as compensation from United India Insurance Company, the bench said that family members cannot demand an insurance payout when the cause of death is due to the driver’s own mistake, without involvement of any extraneous factors. The SC upheld the decision of Karnataka HC on November 23 last year rejecting their claim for compensation.
This verdict was finally passed for a case that was impending with the incident dating over a decade ago, 2014. On June 18, 2014, one N S Ravisha was driving his car, with his father, sister and her children as co-passengers. He drove rashly and at a high speed and broke traffic rules before losing the control of the vehicle, with the car ultimately toppling over the road. The top court refused to interfere with the Karnataka High Court’s order which had dismissed the plea filed by the deceased’s legal heirs claiming compensation.
Understanding Vehicle (Motor) Insurance –
This legislation was created in the 1930s with a view that victims of motor accidents should not go without compensation owing to the financial capacity of the first party. Under the provisions of The Motor Vehicles Act, 1988, any motor vehicle operating on public roads should be insured against third party liability. This is a mandatory legal requirement, with new cars while registration must purchase third-party insurance for three years.
Third-party insurance is compulsory for all vehicle-owners as per the Motor Vehicles Act. It covers only your legal liability for the damage you may cause to a third party – bodily injury, death, and damage to third party property – while using your vehicle. Third Party cover does not pay for repair of damage to your vehicle. “Third party” includes everyone (other than the contracting parties to the insurance policy), be it a person traveling in another vehicle, one walking on the road, or a passenger in the vehicle itself, which is the subject matter of the insurance policy.
Third-Party Car Insurance only covers damages or loss caused to third-party property, individual or vehicle. The exclusions are listed below:
a) Accidental damages caused to the own vehicle.
b) Injuries or death of the car owner due to negligence/rash or reckless driving/intoxication
c) Loss that occurs while driving without a valid driving license.
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