Insurers to compensate victims of road accidents even in this case. Know details

Bombay High Court in one of its verdicts has ruled that insurance companies are liable to pay compensation to the accident victim's kin even if the offending vehicle driver's licence is invalid or expired. The Bombay High Court mandate rules that even if the offending vehicle driver's licence has expired and not renewed, it doesn't make him an unskilled driver.

The Bombay High Court has directed a major insurance company to compensate the family of a woman who lost her life in an accident in November 2011, while giving the verdict. The court said that the insurance company could recover the compensation amount from the owner of the offending vehicle later.

The Bombay High Court was hearing a petition filed by the family members of the deceased woman challenging an order passed by the Motor Accidents Claims Tribunal exonerating the insurance company from paying compensation as the driving licence of the driver of the offending vehicle had expired, reports PTI. "Driving licence of the driver of the offending vehicle was not renewed at the time of the accident. It does not mean that he was not a skilled driver," the HC said in its verdict.

The Bombay High Court also added that it is a well-settled principle of law that if the driver of the offending vehicle was not holding an effective and valid driving licence at the time of the accident, the insurance company has to pay the compensation first to the victim or his or her family and later recover it from the owner of the vehicle. The Bombay High Court said that the tribunal had not considered this factor and passed its order rejecting the insurance compensation claim mechanically.