Insurance claim on death due to accident
R.Ranganathan
(Querist) 23 July 2010
This query is : Resolved
Person died due to motor accident. No third party involved. Vehicle insurance expired one month before the accident. Vehicle was purchased with the Bank loan and hypothecated to the Bank. Neither the owner nor the Bank bothered to renew the insurance for the vehicle on its expiry. Whether legal heirs of the deceased can claim compensation for the death from 1) Bank for negligence or 2) from the insurance company on the expired policy.
Yamalapalli Haribob
(Expert) 23 July 2010
It is duty of owner of the to renew the insurance policy of the vehicle.But failed.So either the bank or the insurance company are not resposible to pay compensation to legal heirs of deceased.
s.subramanian
(Expert) 23 July 2010
bank or the insurance company cannot be made liable.
Chanchal Nag Chowdhury
(Expert) 24 July 2010
No. Compensation for the death can be claimed from the owner only. However, the insurance co. may be made a party,as under certain circumstances, the insurance co. has also been held liable.
R.Ranganathan
(Querist) 25 July 2010
Mr. S.Subramanian
The Vehicle was purchased from the loan raised from the Bank. Is it not the duty of the loanee to safeguard the vehicle by insuring it. Normally before the loan is released, the Banks get the insurance done through their own sources. What are the rules to be followed by the Banks and the RBI guidelines for giving loans and follow up matters in this regard specially renewal of insurance on Vehicle loans. What are the rights of the legal heirs to claim compensation for no fault of theirs.
R.Ranganathan
(Querist) 26 July 2010
Kindly enlighten me about the rights of the legal heirs for claiming compensation for the accidental death. Who should be held liable for not renewing the insurance policy when it is a mandatory to insure the vehicles purchased through loan from Banks.
