The High Court in Punjab and Haryana has ruled that vehicle insurance is applicable to vehicles that are registered and insured in India yet have met with accidents in another country. The insurance company in that case is liable to pay the claim, reported Press Trust of India. The order came about in light of the compensation sought by the kin of the 54 pilgrims that lost their lives as their bus fell into the Trishuli Nadi after the driver lost control of the bus. One of the pilgrim’s relatives were to receive Rs 4.34 lakhs from the bus owners as directed by the Motor Accident Claim Tribunal. In protest of that, the owners filed an appeal with the HC as the tribunal had absolved the insurance company stating that the accident took place in Nepal and therefore it wasn’t liable.
Justice Rajbir Sehrawat observed, “Once insured, the vehicle is insured to cover all geographical areas where the vehicle is authorised by the authorities to travel.”
The court observed that insurance companies cannot be exempt 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.