Case Title: Branch Manager, Bajaj Allianz General Insurance vs. Binita Toppo and others
Summary
The Jharkhand High Court has ruled that insurance agencies are responsible for compensating hired drivers in motor vehicle accidents, regardless of negligence. This ruling was based on a miscellaneous appeal filed by Bajaj Allianz under section 173(1) of the Motor Vehicle Act. The case involved a fatal accident involving a vehicle insured by the respondent. The District Judge awarded compensation in the amount of Rs. 6,08,540, along with a supplementary 6% annual interest. The court ruled that the deceased was operating the offending vehicle at the time of the accident, and the insurance company is obligated to satisfy the award amount with interest and recover it from the owner/insured.
About the case
The Jharkhand High Court has issued a significant ruling in which it has determined that an insurance agency is responsible for compensating a hired driver in the event of their mortality in a motor vehicle accident, regardless of whether the accident was caused by the driver’s negligence. Once the insurer has accepted an additional premium to cover the indemnity of the vehicle proprietor, this liability is created.
Justice Pradeep Kumar Srivastava stated, “In light of the aforementioned discussion and the aforementioned reasons, I am of the firm conviction that the insurance company is responsible for compensating a hired driver in the event of their death, regardless of whether the accident was caused by the driver’s negligence.” Once the insurer has accepted an additional premium to cover the liability of a paid employee and to indemnify the vehicle’s proprietor, this liability is incurred.
The aforementioned judgment was the result of a miscellaneous appeal filed by Bajaj Allianz under section 173(1) of the Motor Vehicle Act. The appeal was intended to challenge the award made by MACT Gumla, which awarded the claimants compensation in the amount of Rs.6,08,540/-, as well as interest.
In the present case, the plaintiff’s spouse was involved in a fatal road accident that involved a vehicle that was insured by the respondent. The District Judge issued a decision that awarded compensation in the amount of Rs. 6,08,540, in addition to a supplementary 6% annual interest that was calculated from the initiation of the claim petition on September 20, 2014, until the full settlement of the sum. The petitioner is currently contesting this judgment as part of the ongoing appeal procedure.
The Court observed that the computerized Insurance Policy issued by the appellant in relation to the offending vehicle was a comprehensive Private Car Package Policy, which required an additional premium payment for Employee-one person.
The Court determined that the deceased was operating the offending vehicle at the time of the accident, and the accident was the direct consequence of his negligence and error. Consequently, the insurance company/appellant is obligated to satisfy the award amount with interest and subsequently recover it from the owner/insured in accordance with the terms and conditions of the policy.
Accordingly, the appeal was dismissed.
