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The Court said that the driver and owner of the car involved in the drunk driving accident will reimburse the insurance company for the payment they dispense with
The Kerala High Court has held an insurance company will be liable to pay compensation to the victim of an accident compensate even if the policy document does not stipulate or enforce such compensation due to drunk driver.
It was Justice Sophy Thomas's view that the liability under the Policy is statutory in nature and so the Company is not liable to be exonerated from payment of compensation to the victim, while noting that the liability on the insurance company will not be done away with even if the driver is in an inebriated state and due to which his consciousness and senses will be impaired, so as to render him unfit to drive a vehicle.
"Even if, there is a condition in the Policy Certificate that driving of a vehicle in an intoxicated condition is violation of the terms and conditions of the Policy, still the Insurance Company is liable for payment of compensation," the single bench judge said.
The high court answered the issue while considering an appeal against and award by the Motor Accident Claim Tribunal (MACT). The appellant had contended that the compensation awarded to the tune of Rs. INR 2.4 lakh, was inadequate.
The case dates back to an incident that occurred in 2013 and the appellant was traveling in an auto rickshaw which was hit by the car being driven by the respondent, who was inebriated. Following this, the appellant sustained multiple injuries and even after being discharged he was unable to work for six months, contributing to a loss of his income to the tune of Rs. 12,000/- per month. He stated that while he claimed over INR 4 lakh, he was only awarded half of it by the MACT. He approached the high court in appeal.
While the insurance company argued that it is not liable to indemnify the insured as the driver was driving the vehicle under the influence of alcohol, the Court ruled otherwise.
Court noted since the driver of the said car which met with an accident as well as the owner of the car have the ultimate liability in this case on account of driving the car in an inebriated condition, they were bound to reimburse the sum paid by the insurance company to them.
Therefore, the Court directed an extra amount of ₹39,000 towards loss of earning, pain and suffering, bystander expenses in the bank account of the appellant with interest at the rate of 7% per annum.
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