The Karnataka High Court ruled that insurance companies must compensate accident victims even if the vehicle lacks a valid fitness certificate or road license. The insurer can later recover the amount from the vehicle owner. The compensation in this case was increased to Rs 18 lakh.
The Karnataka High Court has ruled that insurance companies must compensate accident victims, even if the vehicle involved in the accident lacks a valid fitness certificate or road license. The court stated that the insurance company could later recover the compensation amount from the vehicle owner.
The decision was made by Justice T.G. Sivashankar Gowda's bench while hearing a petition filed by Shriram General Insurance Company. The company sought to overturn a lower court order, which directed it to compensate victims, despite the fact that the freight vehicle responsible for the accident did not have the required documents.
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Background of the incident
On June 17, 2013, Nandeeshappa, a cyclist returning home from work, was struck by a freight vehicle on the New Kote Chikkatirupati route. He suffered severe head injuries and died as a result. The subordinate court, which heard the case, had ordered Shriram General Insurance Company to compensate Nandeeshappa's family with Rs 13.88 lakh.
Shriram General Insurance challenged this decision in the High Court, arguing that the freight vehicle involved lacked a valid road license and fitness certificate. The company claimed that the responsibility to compensate the victims should lie with the vehicle owner for failing to renew these documents.
However, the High Court dismissed this argument, emphasizing that while the vehicle owner was at fault for not renewing the necessary documents, the insurance company could not evade its responsibility. The court directed that the insurance company must compensate the victim's family and recover the amount from the vehicle owner afterwards.
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The court ordered the compensation amount to be deposited into the victim’s account within eight weeks. Additionally, it increased the compensation amount set by the subordinate court to Rs 18 lakh, providing further relief to the victim's family.