Insurance Company to pay claim even if accident is abroad: High Court

The Punjab and Haryana High court has ruled that if a vehicle registered and insured in India meets with an accident in another country, the insurance company would be liable to pay the claim. The HC order pertained to paying compensation to the kin of 54 pilgrims from Kurukshetra who lost their lives in an accident in Nepal on June 18, 1995. The HC said the provisions of the Motor Vehicles Act make it clear that 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.” The order was passed on November 13. “Once insured, the vehicle is insured to cover all geographical areas where the vehicle is authorised by the authorities to travel. The insurance company cannot avoid its liability to pay the compensation only on the ground that the vehicle was used in any particular city, state or a particular geographical area,” observed Justice Rajbir Sehrawat.