#Personal Accident Cover

Chhattisgarh High Court clarifies that while compensation under Section 166 of the Motor Vehicles Act is barred if the owner-driver dies due to their own negligence, insurers must still honor the contracted personal accident cover. The ruling awards Rs. 1,00,000 with 6% interest from 2019, reinforcing the distinction between statutory liability and contractual obligations in motor accident claims.

The Punjab and Haryana High Court ruled that a person driving a borrowed vehicle cannot claim statutory no-fault compensation under Section 163-A or Section 164 of the Motor Vehicles Act, as they are not considered third parties. Only the contractual personal accident cover of ₹1,00,000 is payable, clarifying that statutory benefits extend only to true third-party victims, not those in privity with the vehicle owner.

The Punjab & Haryana High Court ruled that a standalone personal accident policy for an owner-driver provides coverage regardless of which vehicle they are operating, as long as it is owned by them. This interpretation ensures broader protection for vehicle owners and binds insurers to honor claims even when the accident occurs in a vehicle not separately insured under a motor policy.

NCDRC rules that an LMV driving licence does not authorize motorcycle riding under Section 10(2) of the Motor Vehicles Act, 1988, rendering insurance claims invalid if the driver lacks the appropriate licence class. The ruling underscores strict statutory compliance for third-party liability and personal accident claims, impacting insurers and claimants alike.