Karnataka High Court has ordered insurance companies to pay accident compensation to the policy owner even if the vehicle does not have a fitness certificate and permit. The order was issued in a bike accident case from Raichur in Karnataka.
The accident leading to the legal battle between the policy owner and the insurance company started in 2015 after a school bus collided with a bike. The bike rider died as a result of the accident.
Following this, a lower court directed the owner of the school bus, which lacked a fitness certificate and permit, to pay the compensation to the family of the deceased. However, the bus owner approached the high court claiming that the insurance company was liable to pay the compensation. After hearing the petition, the high court quashed the lower court order and directed the insurance company to give compensation to the family.
The High Court pointed out that the policy was issued when the vehicle had a fitness certificate and therefore, the company is liable to pay the compensation.
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