The Madras High Court has given an important decision that even if the driver of a vehicle is drunk and there is a road accident, the insurance company will still be obliged to compensate the deceased’s family. However, the insurance company can later recover this amount from the vehicle owner.

What is the matter?

• The incident took place on 30 December 2017.
• A person named Rajsekaran was walking on the Thiruniramalai Main Road in Chennai.
• Then a high speed van hit him from behind, killing him on the spot.
• The family of the deceased demanded a compensation of ₹ 65 lakh.

Motor Accident Claims Tribunal Decision

• Mact fixed a compensation of ₹ 27.65 lakh.
• But the insurance company was freed from the responsibility of compensation, as the driver was drunk at the time of the accident.

High court decision

• Rajsekaran’s family challenged the decision in the High Court.
• He claimed that the monthly income of the deceased has been incorrectly assessed.
• The High Court increased the compensation to ₹ 30.25 lakh.
• The court clarified that the insurance company would have to deposit compensation within 6 weeks.
• Later the insurance company can recover this amount from the vehicle owner under the legal process.

Importance of decisions

• This decision will provide relief to the families of the deceased in cases where the driver refuses to pay compensation due to alcohol intoxication.
• Insurance companies will have to pay compensation first and later recover from the vehicle owner.