Insurance company to pay, even if the accident occurs abroad

Punjab & Haryana High Court: In its recent order, the Court ruled that the insurance company is bound to pay compensation for the accident caused, even if the same occurred abroad. The Bench of Rajbir Sehrawat, J.  set aside the earlier order of the Motor Accident Claims Tribunal, Kurukshetra which had absolved the insurance company from its liability and had instead ordered the owners of the bus to pay a compensation of Rs 4, 34,500, in a case where the bus in question carrying 54 pilgrims met with an accident in Nepal.

Justice Sehrawat in his judgement stated, “….the insurance policy is attached to the ‘vehicle’ in question and not to geographical expanse of the area of operation of the vehicle in question…”. He further supplemented the same by saying, “…Motor Vehicles Act extends only to ‘whole of India’ as per  Section 1, so it does not cover the area outside India. However, this rational also does not exempt the Insurance Company from liability arising from the usage of the vehicle outside the geographical area of the Union of India. This section also implies that the Act would be applicable to all the citizens and subjects of India qua all the Motor Vehicular aspects in India. It does not exclude the liability of one citizen or entity of India qua the other citizen of India even if the same is incurred outside the geographical area of Union of India…” [Anil Kumar v. Roop Kumar Sharma, FAO No. 152 of 2017, decided on 13.11.2017]

Join the discussion

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.