Borrower of a car cannot claim compensation from insurance company in case of absence of Personal Accident Coverage

Last updated: 02 October 2022
Quick Summary
The Kerala High Court has ruled that the legal heirs of a person who dies while driving a borrowed car cannot claim compensation from the insurance company if there is no Personal Accident Coverage. The court determined that the deceased, by borrowing and driving the vehicle, stepped into the owner's shoes. As the accident was caused by the deceased's own negligence, his heirs cannot claim against him, making the insurance claim under Section 163A of the Motor Vehicles Act unsustainable.

Court :
Kerala High Court

Brief :
For insurance claim under MVA,1988 in case of driver of a borrowed motor vehicle personal insurance is necessary. A person driving a motor vehicle of his /her friend enters into shoes of the owner of the vehicle and his/her heirs or legal representatives cannot claim compensation in absence of a Personal Accident Insurance Policy.

Citation :
The New India Insurance Co. Ltd. v. Rajeswari & Ors. MACA NO. 2724 OF 2014

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