Liability of Insurance Company in Case of Accident Involving Family Member as Driver

Key Legal Principles

1. Insurance Coverage for Personal Accident Claims:

2. The insurance company''s liability for personal accident coverage is not limited by the Indian Motor Tariff, and there is no cap on the amount of compensation payable by the insurance company for personal accident claims involving the owner and driver of the vehicle Vasuki VS Santhi - Supreme Court (2021).

3. Negligence and Liability:

4. If an accident occurs due to the own fault and negligence of the driver, the insurance company may not be liable to pay compensation. However, if the driver is covered under personal accident insurance, the insurance company may still be liable for that claim NATIONAL INSURANCE CO. LTD. VS ASHALATA BHOWMIK - Supreme Court (2018).

5. Driver''s License Validity:

6. The insurance company is not liable to pay compensation if the driver does not hold a valid driving license. The onus is on the vehicle owner to prove that the driver was authorized and held a valid license. If the driver lacks a valid license, the insurance company can be absolved of liability, but it may still be required to pay the claim and recover the amount from the owner United India Insurance Co. Ltd. VS Rakesh Kumar Arora - Supreme Court (2008)PAPPU VS VINOD KUMAR LAMBA - Supreme Court (2018).

7. Family Member as Driver:

8. In cases where the driver is a family member (e.g., son), the insurance company may still be liable if the policy covers personal accident claims for the owner and driver, regardless of the familial relationship, provided that the driver was authorized to drive the vehicle and held a valid license Vasuki VS Santhi - Supreme Court (2021).

Application to the Current Case

• Scenario: The driver (son) was involved in an accident resulting in the death of the mother (vehicle owner).
• Insurance Coverage: If the insurance policy includes personal accident coverage for the owner and driver, the insurance company is liable to pay the claim for the mother''s death, assuming the son was authorized to drive and held a valid license.
• Negligence: If the accident was due to the son''s negligence, the insurance company may argue against liability, but personal accident coverage could still apply.
• License Validity: If the son did not have a valid driving license, the insurance company could deny liability based on the breach of policy conditions.

Conclusion and Recommendations

• Claim Submission: Ensure that the claim is submitted under the personal accident coverage provisions of the insurance policy.
• Documentation: Gather evidence proving that the son was authorized to drive the vehicle and held a valid driving license at the time of the accident.
• Negligence Consideration: Prepare to address any claims of negligence that may affect the insurance company''s liability.

In summary, the insurance company may be liable to pay the claim for the mother''s death if the son was authorized to drive and held a valid license, despite any negligence on his part. If the license was invalid, the insurance company could deny liability. Vasuki VS Santhi - Supreme Court (2021)NATIONAL INSURANCE CO. LTD. VS ASHALATA BHOWMIK - Supreme Court (2018)United India Insurance Co. Ltd. VS Rakesh Kumar Arora - Supreme Court (2008)PAPPU VS VINOD KUMAR LAMBA - Supreme Court (2018)]