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PUNJAB & HARYANA HIGH COURT: INSURANCE COMPANY TO PAY EVEN IF ACCIDENT NOT IN INDIA

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 order pertained to compensation to the kin of 54 pilgrims from Kurukshetra who lost their lives in an accident in Nepal on June 18, 1995. The driver of the bus had lost control and the vehicle had fallen into Nepal’s Trishuli Nadi.

Court was of the view that 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.”