Background
The Madras High Court has ruled that an insurance company cannot evade liability for compensating the family of a victim killed in an accident caused by an intoxicated driver. The judgment came in response to an appeal by the insurance firm, which contended that the driver’s intoxication was a violation of policy terms, absolving them of responsibility.
Court’s Rationale
The court rejected the insurance company’s argument, stating that while drunken driving is an offense, it does not nullify the insurer’s obligation to compensate third-party victims. The Motor Vehicles Act mandates that insurance companies provide coverage for third-party claims regardless of policy violations by the insured. The court emphasized that the insurance firm could recover the compensation amount from the policyholder but could not deny relief to the victim’s dependents.
Existing Measures
India’s legal framework strictly prohibits drunken driving under Section 185 of the Motor Vehicles Act, imposing fines and imprisonment. Additionally, Section 149 of the Act requires insurers to honor third-party claims even if the insured vehicle was used in violation of policy conditions. However, the insurer retains the right to seek reimbursement from the erring policyholder.
Conclusion
The judgment reinforces the principle that insurance companies cannot deny compensation to innocent victims due to the insured’s misconduct. While insurers can take legal action against policyholders who breach terms, the rights of accident victims and their families must remain protected under the law.