Insurance firm must pay third-party damages even if vehicle is hired out: Supreme Court
The Hindu
Top court gives verdict in case pertaining to fatal accident involving bus hired by UPSTC
The liability of a insurance company to pay third-party damages does not freeze merely because the vehicle has been hired out by the registered owner, the Supreme Court has held in a recent order. The insurance company would still have to pay up in case of an accident and cannot lob the responsibility on to the hirer. Both the insurance policy and the vehicle are transferred into the possession of the hirer on the basis of an agreement with the registered owner. The hirer becomes the ‘owner’ for a specified period.
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