The Kerala High Court said on Monday that an insurance company will have to pay compensation initially to the victim or third party of an accident.
The court said that the insurance company will have to pay money regardless of whether the insurance policy implements the payment of compensation if the driver is drunk or not. Justice Sophie Thomas said that even if the insurance policy does not include the accident victim while driving under the influence of alcohol, the insurance company will have to pay the third party in the first place.
The court said in its decision
Later, the insurance company can seek compensation from the owner or driver of the car responsible for the accident, the court said. "Even if the policy certificate stipulates that driving under the influence of alcohol is a violation of the terms and conditions of the policy, the insurance company will have to pay compensation," the court said. It is obvious that when the driver is in an inebriated state, his own control decreases, making him unfit to drive. But since the compensation has been legalised in the policy, the company cannot avoid compensating the victim.
Appellant sought compensation of Rs 4 lakh
The court was considering an appeal in which the appellant was injured in a road accident. The appellant was injured in 2013 when he was hit by a car while travelling in an auto rickshaw. The appellant said that he suffered serious injuries and was treated for 7 days in the hospital. The appellant also said that despite being discharged due to injury, he had to rest for 6 months. The appellant, a driver by profession, had a monthly income of Rs 12,000 and had claimed compensation of Rs 4 lakh.
Compensation given by the court
Even though the appellant sought compensation of Rs 4 lakh for the injuries and troubles caused by the accident, the court ordered him to pay Rs 2.4 lakh. He then took the matter to the High Court. The court directed the insurance company to deposit an additional amount of Rs 39,000 in the bank account of the appellant for principal compensation and other hassles, along with interest at the rate of 7% per annum. The court also directed the company to recover the deposit from the driver and owner of the car.